The Treasury bill rate is 3% and the market risk premium is 7%.

Project	Beta			Internal Rate of Return, %
P		.90			10
Q		0			8
R		3.0			23
S		.30			9
T		2.6			25

a.	What are the project costs of capital for new ventures with betas of .65 and 1.65? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)

Beta	Cost of capital
.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.)

	Project P
	Project Q
	Project R
	Project S
	Project T