Response to the following problem:
The Treasury bill rate is 5% and the market risk premium is 7%.
Project Beta 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? (You may select more than one answer. )
Q, R, P, S, T.