CAPM and Cost of Capital Suppose the Treasury bill rate is 4 and the market...

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CAPM and Cost of Capital Suppose the Treasury bill rate is 4 and the market risk prem is 7 LO12 3 a What are the project costs of capital for new ventures with betas of 75 and 1 75 b Which of the following capital investments have positive NPVs Project P Q RST Beta 1 0 0 2 0 0 4 1 6 Internal Rate of Return 14 6 18 7 20

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