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

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