Find what are the project costs of capital for new ventures

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Reference no: EM132763857

The Treasury bill rate is 4% and the market risk premium is 8%.

Project Beta Internal Rate of Return, %

P 1.10 16

Q 0.00 12

R 2.00 20

S 0.50 13

T 1.60 22

Problem a. What are the project costs of capital for new ventures with betas of 0.85 and 1.78? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)

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

Reference no: EM132763857

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