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An NPV profile plots a projects NPV at various costs of capital. A projects NPV profile is shown in the graph. Identify the range of

An NPV profile plots a projects NPV at various costs of capital. A projects NPV profile is shown in the graph. Identify the range of costs of capital that a firm would use to accept and reject this project by responding to the drop-down choices below the graph.

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A Accept/Reject?
B Accept/Reject?

This NPV profile demonstrates that as the cost of capital increases, the projects NPV increases/decreases? .

NPV (Dollars) 400 300 200 A 100 0 B -100 -200 0 2 4 6 8 10 12 14 16 18 20 COST OF CAPITAL (Percent)

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