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FinanceQ&A LibraryThe Treasury bill rate is 2% and the market risk premium is 7%. Project Beta Internal Rate of Return, % P 0.90 10 Q 0.00 8 R 3.00 23 S 0.30 9 T 2.60 25 a. What are the project costs of capital for new ventures with betas of 0.65 and 1.65? b. Which of the capital investments shown above have positive (non-zero) NPV's?Question

The Treasury bill rate is 2% and the market risk premium is 7%.

Project | Beta | Internal Rate of Return, % |

P | 0.90 | 10 |

Q | 0.00 | 8 |

R | 3.00 | 23 |

S | 0.30 | 9 |

T | 2.60 | 25 |

**a.** What are the project costs of capital for new ventures with betas of 0.65 and 1.65?

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

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