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The Treasury bill rate is 5% and the market risk premium is 8%. ...

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Finance

The Treasury bill rate is 5% and the market risk premium is 8%.

Project Beta Internal Rate of Return, %
P 0.95 14
Q 0.00 12
R 2.00 21
S 0.35 13
T 1.60 23

a. What are the project costs of capital for new ventures with betas of 0.70 and 1.59? (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.)

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