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The Treasury bill rate is 5% and the market risk premium is 7%. Project A. O o Beta 0.95 0.00 3.00 0.35 2.30 Internal Rate

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The Treasury bill rate is 5% and the market risk premium is 7%. Project A. O o Beta 0.95 0.00 3.00 0.35 2.30 Internal Rate of Return, % 14 14 26 15 28 a. What are the project costs of capital for new ventures with betas of 0.70 and 1.65? (Do no your answers as a percent rounded to 2 decimal places.) Beta 0.7 165 Cost of Capital 9 V. 7D 1.65 % . Which of the capital investments shown above have positive (non-zero) NPV's? (You may sele he box with the question mark to produce a check mark for a correct answer and double clic empty the box for a wrong answer.) Project P ? Project Q 2 Projects 2 Project T 2 Project R

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