The Treasury bill rate is 5% and the market risk premium is 7%.

Project	Beta			Internal Rate of Return, %
P		.85			18
Q		0			14
R		2.0			18
S		.25			15
T		1.5			20

a.	What are the project costs of capital for new ventures with betas of .60 and 1.57? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)

Beta	Cost of capital
.60	%
1.57	%

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.)

	Project P
	Project Q
	Project R
	Project S
	Project T