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What are the project costs of capital for new ventures

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Reference no: EM132743732

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? P, Q, R, S and/or T?

Reference no: EM132743732

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