The Treasury bill rate is 6% and the market risk premium is 8%.

Project	Beta			Internal Rate of Return, %
P		0.85		18
Q		0.00		14
R		2.00		22
S		0.25		15
T		1.20		24

a. What are the project costs of capital for new ventures with betas of 0.60 and 1.32? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)

b. Which of the capital investments shown above have positive (non-zero) NPV's? (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.)

• Project P
• Project Q
• Project S
• Project T
• Project R