Question
The Treasury bill rate is 3% and the market risk premium is 7%. ProjectBetaInternal Rate of Return, %P1.1018Q0.0014R3.0024S0.5015T2.5026 a. What are the project costs of
The Treasury bill rate is 3% and the market risk premium is 7%.
ProjectBetaInternal Rate of Return, %P1.1018Q0.0014R3.0024S0.5015T2.5026
a.What are the project costs of capital for new ventures with betas of 0.85 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
- unanswered
- Project Q
- unanswered
- Project S
- unanswered
- Project T
- unanswered
- Project R
- unanswered
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