QUESTION 5 The cost of capital at which the NPV profiles of two projects cross is called the crossover rate breakeven point balance point demand equilibrium QUESTION 6 The NPV method implicitly assumes that cashflows generated by the project are reinvested in additional units of the same asset, such as multiple computer terminals at the same return as the current project's return in projects with a return equal to the firm's WACC in a risk-free asset (such as a treasury bill)