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

Project Beta Internal Rate of Return, %

P 0.95 11

Q 0 12

R 2.00 21

S 0.35 13

T 1.60 23

a. What are the project costs of capital for new ventures with betas of .70 and 1.59? (Do not round intermediate calculations. Round your answers to 2 decimal places.)

Beta Cost of Capital

0.70 ______%

1.59 ______%

b. Which of the following capital investments have positive NPVs? (You may select more than one answer.)

__P __Q __R __S __T