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The Treasury bill rate is 2% and the market risk premium is 7%. Project P 0 R S T Beta 0.90 0.00 3.00 0.30 2.60

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The Treasury bill rate is 2% and the market risk premium is 7%. Project P 0 R S T Beta 0.90 0.00 3.00 0.30 2.60 Internal Rate of Return, % 10 8 23 9 25 a. What are the project costs of capital for new ventures with betas of 0.65 and 1.65? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Beta Cost of Capital 0.65 % 1.65 % 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 a correct answer and double click the box with the question mark to empty the box for a wrong answer.)

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