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

Project	Beta	Internal Rate of Return, %
P	0.75	16
Q	0	12
R	1.00	16
S	0.15	6
T	0.70	18

a.	What are the project costs of capital for new ventures with betas of .50 and 1.25? (Do not round intermediate calculations. Round your answers to 2 decimal places.)

Beta	Cost of Capital
0.50	%
1.25	%

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
	S
	R
	T