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8. NPV profiles An NPV profile plots a project's NPV at various costs of capital. An example NPV profile is shown below: Identify the range
8. NPV profiles An NPV profile plots a project's NPV at various costs of capital. An example NPV profile is shown below: Identify the range of costs of capital that a firm would use to accept and reject this project, and answer the questions that follow. ? 600 17 500 400 300 200 NPV (Dollars) 100 A 0 + 00 B -100 -200 -300 +)0 2 10 12 14 16 18 20 4 6 8 DISCOUNT (REQUIRED) RATE (Percent) The project represented by triangle A should be This NPV profile demonstrates that as the cost of capital increases, the project's NPV
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