an NPV profile plots a projects npv at various costs of capital

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. Identity the range of costs (ranges labeled "A" and "*") of capital that a firm would use to accept and reject this project A-2 NPV Dollars 200 100 -100 -200 0 2 6 8 10 12 14 16 18 20 COST OF CAPITAL Percent 300 700 100 D B -100 -200 0 2 4 6 8 10 12 14 16 18 20 COST OF CAPITAL (Percent) A WACC B IRR The point at which the NPV profile intersects the horizontal axis represents the