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Te Treasury bill rate is 4% and the market risk premium is 8%

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Te Treasury bill rate is 4% and the market risk premium is 8%.

Project Beta Internal Rate of Return, %

P 1.10 16

Q 0.00 12

R 2.00 20

S 0.50 13

T 1.60 22

a. What are the projects costs of capital for new ventures with betas of 0.85 and 1.78? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)

b. Which of the capital investments shown above have positive (non-zeroz0 NPV's? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer.)

Project P

Project Q

Project S

Project T

Project R