An NPV profile plots a projects NPV at various costs of capital, labeled "A" and "B" in the graph. A projects 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.

A
B

This NPV profile demonstrates that as the cost of capital increases, the projects NPV

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 firm would use to accept and reject this project. NPV (Dollars) 400 300 200 100 0 B - 100 -200 0 2 4 6 8 10 12 14 16 18 20 COST OF CAPITAL (Percent) A B This NPV profile demonstrates that as the cost of capital increases, the project's NPV