Which of the following capital investments have positive NPVs?
Which of the following capital investments have positive NPVs?
Project | Beta | Internal Rate of Return (%) |
Alpha | 1.0 | 14 |
Delta | 0.4 | 7 |
Gamma | 0 | 6 |
Epsilon | 1.6 | 20 |
Zeta | 2.0 | 18 |
Homework Answers
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CAPM and Cost of Capital. Suppose the Treasury bill rate is 4% and the market risk premium is 7%.
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