Question
The Treasury bill rate is 5% and the market risk premium is 8%. Project Beta 0.95 0.00 2.00 0.35 1.60 I PRST Q Internal
The Treasury bill rate is 5% and the market risk premium is 8%. Project Beta 0.95 0.00 2.00 0.35 1.60 I PRST Q Internal Rate of Return, % 14 12 21 13 23 a. What are the project costs of capital for new ventures with betas of 0.70 and 1.59? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) 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.)
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
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