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The Treasury bill rate is 4% and the market risk premium is 6%. 16 Project P Internal Rate of Return, % 14 8 22 9

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The Treasury bill rate is 4% and the market risk premium is 6%. 16 Project P Internal Rate of Return, % 14 8 22 9 20 1.76 points Beta 0.75 0.00 3.00 0.15 1.30 Q R S T a. What are the project costs of capital for new ventures with betas of 0.50 and 1.65? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Beta Cost of Capital % 0.5 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 2 Projects ? Project T 2 Project R

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