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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
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. NPV (Dollars) 600 500 400 300 200 100 A 0 -100 -200 -300 2 468 10 12 14 16 DISCOUNT (REQUIRED) RATE (Percent) B 18 20 (?) The project represented by triangle A should be rejected accepted The project represented by triangle A should be The point at which the NPV profile intersects the horizontal axis represents the IRR MIRR
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