Question
The Treasury bill rate is 4% and the market risk premium is 8%. Project Beta Internal Rate of Return, % P 0.85 14 Q 0
The Treasury bill rate is 4% and the market risk premium is 8%. Project Beta Internal Rate of Return, % P 0.85 14 Q 0 10 R 1.00 11 S 0.25 11 T 0.60 13 a. What are the project costs of capital for new ventures with betas of .60 and 1.15? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Beta Cost of Capital 0.60 % 1.15 % b. Which of the following capital investments have positive NPVs? (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.)
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