What are the project costs of capital for new ventures

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The Treasury bill rate is 4% and the market risk premium is 6%. Project Beta Internal Rate of Return, %

P 0.75 14 

Q 0.00 8

R 3.00 22

S 0.15 9

T 1.30 20

a. What are the project costs of capital for new ventures with betas of 0.50 and 1.65? (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.)      

Check all that apply

  • Project P
  • Project Q
  • Project S
  • Project T
  • Project R

Reference no: EM132804482

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