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

Project	Beta			Internal Rate 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.)

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