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The Treasury bill rate is 4% and the market risk premium is 12%. Project Beta Internal Rate of Return, % P 0.75 16 Q 0.00

The Treasury bill rate is 4% and the market risk premium is 12%.

Project Beta Internal Rate of Return, %
P 0.75 16
Q 0.00 12
R 1.00 16
S 0.15 6
T 0.70 18

a. What are the project costs of capital for new ventures with betas of 0.50 and 1.25?

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