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The Treasury bill rate is 2% and the market risk premium is 8%. 16 Project Beta Internal Rate of Return, % 12 8 26 8

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The Treasury bill rate is 2% and the market risk premium is 8%. 16 Project Beta Internal Rate of Return, % 12 8 26 8 28 1.76 points 1.00 0.00 3.00 0.40 2.60 Q R S T Skipped a. What are the project costs of capital for new ventures with betas of 0.70 and 1.12? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Beta Cost of Capital % 0.7 1.12 % 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.) 2 Project P ? Project Q 2 Projects 2 Project T 7 Project R

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