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Problem 12-30 CAPM and Cost of Capital (LO3) The Treasury bill rate is 6% and the market risk premium is 7% Project P Internal Rate

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Problem 12-30 CAPM and Cost of Capital (LO3) The Treasury bill rate is 6% and the market risk premium is 7% Project P Internal Rate of Return, 14 ie 20 11 22 Beta 1.00 0.00 2.00 0.48 1.7a R 5 T a. What are the project costs of capital for new ventures with betas of 0.75 and 198? (Do not round Intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Beta Cost of Capital 0.75 1.98 % b. Which of the capital investments shown above have positive (non-zero) NPV'S? (You may select more than one answer. Single click the box with the question mark to produce a check mark for o correct answer and double click the box with the question mark to empty the box for a wrong answer.) Project P Project Projects Project 1 Projects

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