The Treasury bill rate is 4% and the market risk premium is 8%.

ProjectBetaInternal Rate of Return, %P0.6510Q0.0010R1.0012S0.0511T0.6014

a.What are the project costs of capital for new ventures with betas of 0.40 and 1.78?(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