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

Project	Beta	Internal Rate of Return, %
P	0.95	11
Q	0	14
R	3.00	27
S	0.35	15
T	2.30	29

a.	What are the project costs of capital for new ventures with betas of .70 and 1.65? (Do not round intermediate calculations. Round your answers to 2 decimal places.)

Beta	Cost of Capital
0.70	%
1.65	%

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.)

	Q
	R
	P
	S
	T