What are the project costs of capital for new ventures


Solve the below problem:

Q: The Treasury bill rate is 5% and the market risk premium is 7%. Project tBeta Internal Rate of Return, % P 0.95 11 Q 0 14 R 3.00 27 S 0.35 15 T 2.30 29

a. What are the project costs of capital for new ventures with betas of .70 and 1.65? (Do not round intermediate calculations. Round your answers to 2 decimal places.)

b. Which of the following capital investments have positive NPVs?

Solution Preview :

Prepared by a verified Expert
Cost Accounting: What are the project costs of capital for new ventures
Reference No:- TGS02027407

Now Priced at $20 (50% Discount)

Recommended (95%)

Rated (4.7/5)