8. NPV profiles An NPV profile plots a project's NPV at various costs of capital. An example NPV profile is shown below: Identify the range of costs of capital that a firm would use to accept and reject this project, and answer the questions that follow. 800 500 400 300 200 NPV (Dollars 100 300 19 DISCOUNT REQUIRED) RATE Percent The project presented by triangle A should be The profile demonstrates that the cost of capital increases the project's NPV 8. NPV profiles An NPV profile plots a project's NPV at various costs of capital. An example NPV profile is shown below: Identify the range of costs of capital that a firm would use to accept and reject this project, and answer the questions that follow 2 800 500 200 NPV (Dolar) & & & 100 300 300 2 1024 DISCOUNT REQUIRED) RATE Percent The project represented by triangle A should be This profile demonstrates that as the cost of capital increases, the project's NPU Grade It Now : Save & Continue