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

Project	Beta			Internal Rate of Return, %
P		1.05		14
Q		0.00		12
R		2.00		22
S		0.45		13
T		1.20		24

a. What are the project costs of capital for new ventures with betas of 0.80 and 1.24? (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
• Project Q
• Project S
• Project T
• Project R