Determine what is the cost of capital for the project

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On the basis of the behavior of the firm's stock, you believe that the beta of the firm is 1.41. Assume that the rate of return available on risk-free investments is 5% and that the expected rate of return on the market portfolio is 13%.

Question 1: What is the project IRR? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

Question 2: What is the cost of capital for the project? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

Reference no: EM132583411

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