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5. NPV profiles An NPV profile plots a projects NPV at various costs of capital, labeled A and B in the graph. A projects NPV
5. NPV profiles
An NPV profile plots a projects NPV at various costs of capital, labeled "A" and "B" in the graph. A projects NPV profile is shown as follows. Identify the range of costs (ranges labeled "A" and "B") of capital that a firm would use to accept and reject this project.
A | |
B |
This NPV profile demonstrates that as the cost of capital increases, the projects NPV .
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