The Treasury bill rate is 4% and the market risk premium is 9%.

Project	Beta			Internal Rate of Return, %
P		0.50		10
Q		0.00		8
R		2.00		22
S		0.20		9
T		1.90		24

What are the project costs of capital for new ventures with betas of 0.25 and 1.35? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)

What are the project costs of capital for new ventures with betas of 0.25 and 1.35? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)

What are the project costs of capital for new ventures with betas of 0.25 and 1.35? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)

Bata	Cost of Capital
.25	%
1.35	%

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