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Which of the following statements is CORRECT? a. The NPV profile graph for a normal project will generally have a positive (upward) slope as the

Which of the following statements is CORRECT?

a.

The NPV profile graph for a normal project will generally have a positive (upward) slope as the life of the project increases.

b.

An NPV profile graph is designed to give decision makers an idea about how a project's risk varies with its life.

c.

An NPV profile graph is designed to give decision makers an idea about how a project's contribution to the firm's value varies with the cost of capital.

d.

We cannot draw a project's NPV profile unless we know the appropriate WACC for use in evaluating the project's NPV.

e.

An NPV profile graph shows how a project's payback varies as the cost of capital changes.

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