Question: 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

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

The point at which the NPV profile intersects the horizontal axis represents the WACC or IRR .

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