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5. 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.
5. 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 Accept 100 0 -100 -200 0 2 4 6 8 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
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