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

Project	Beta	Internal Rate of Return, %
P	0.70	12
Q	0	8
R	1.00	14
S	0.10	9
T	1.10	13

a.	What are the project costs of capital for new ventures with betas of .45 and 1.45? (Do not round intermediate calculations. Round your answers to 2 decimal places.)

Beta	Cost of Capital
0.45	%
1.45	%

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.)

	P
	Q
	T
	R
	S