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...


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




































ProjectBetaInternal Rate of Return, %
P0.9010
Q0.008
R3.0023
S0.309
T2.6025


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?



Jun 03, 2022
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