The Treasury bill rate is 5% and the market risk premium is 8%.

Project	Beta	Internal Rate of Return, %
P	0.50	8
Q	0	8
R	2.00	22
S	0.20	9
T	1.90	24

a.	What are the project costs of capital for new ventures with betas of .25 and 1.35? (Do not round intermediate calculations. Round your answers to 2 decimal places.)

Beta	Cost of Capital
0.25	%
1.35	%

b.

Which of the following capital investments have positive NPVs?

Q

R

P

S

T