What are the project costs of capital for new ventures


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.

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Financial Accounting: What are the project costs of capital for new ventures
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