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The Treasury bill rate is 5% and the market risk premium is 7%. Project Beta P 0.75 Q0 R 1.00 5 0.15 T 0.70 Internal

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The Treasury bill rate is 5% and the market risk premium is 7%. Project Beta P 0.75 Q0 R 1.00 5 0.15 T 0.70 Internal Rate of Return, % 16 12 16 6 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 0.50 1.25 Cost of Capital 8.5% 0.14% 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 T

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