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4 NPV profiles Aa Aa An NPV profile plots a project's NPV at various costs of capital. A project's NPV profile is shown as follows.

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4 NPV profiles Aa Aa An NPV profile plots a project's NPV at various costs of capital. A project's NPV profile is shown as follows. Identify the range of costs of capital that a firm would use to accept and reject this project. NPV (Dollars) 400 300 200 Reject 100 Accept -100 -200 0 2 4 81012 14 16 18 20 COST OF CAPITAL Percentl This NPV profile demonstrates that as the cost of capital increases, the project's NPV the range of costs of capital that a firm would use to accept and reject this project. NPV [Doliars) 400 300 200 100 Reject Accept 100 200 0 2 4 68 10 12 14 16 18 20 COST OF CAPITAL (Percent This NPV profile demonstrates that as the cost of capital increases, the project's NPV 200 100 0 -100 -200 0 2 4 6 8 10 12 14 16 18 20 COST OF CAPITAL [Percentl This NPV profile demonstrates that as the cost of capital increases, the project's NPV increases decreases

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