The Treasury bill rate is 2% and the market risk premium is 7%.

Internal Rate

Project Beta of Return%

P 0.90 10

Q 0.00 8

R 3.00 23

S 0.30 9

T 2.60 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.)

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.)

check all that apply

• Project P
• Project Q
• Project S
• Project T
• Project R