5. NPV profiles

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	(accept OR reject)
B	(accept OR reject)

This NPV profile demonstrates that as the cost of capital increases, the projects NPV (increases OR decreases) .