The Treasury bill rate is 3% and the market risk premium is 8%. a. What are the project costs of capital for new ventures with betas of 0.60 and 1.15? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Beta Cost of Capital 0.6 % 1.15 % b. Which of the capital investments (Project P,Q,R,S,T) shown in image 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.)
The Treasury bill rate is 3% and the market risk premium is 8%.
a. What are the project costs of capital for new ventures with betas of 0.60 and 1.15? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)
Beta Cost of Capital
0.6 %
1.15 %
b. Which of the capital investments (Project P,Q,R,S,T) shown in image have positive (non-zero)
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