accept/reject

reject/accept

WACC/IRR

5. NPV profiles An NPV profile plots a project's NPV at various costs of capital, labeled "A" and "B" in the graph. A project's 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. NPV Dollars 0 2 4 6 10 12 14 16 18 20 COST OF CAPITAL I Percent) The point at which the NPV profile intersects the horizontal axis represents the