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What are the project costs of capital for new ventures

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Reference no: EM132032443

The Treasury bill rate is 5% and the market risk premium is 7%.

Project Beta Internal Rate of Return, %
P
.85

18
Q
0

14
R
2.0

18
S
.25

15
T
1.5

20

a. What are the project costs of capital for new ventures with betas of .60 and 1.57? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)

Beta Cost of capital
.60 %
1.57 %

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 R
Project S
Project T

Reference no: EM132032443

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