Question: a & b accept / reject irr / wacc please explain 5. NPV profiles An NPV profile plots a project's NPV at various costs of

a & b accept / reject

irr / wacc

please explain

5. NPV profiles An NPV profile plots a project's NPV at various costs of capital. A project's NPV profile is shown in the graph. Identify the range of costs of capital that a firm would use to accept and reject this project by responding to the drop-down choices below the graph. NPV Dollars 400 300 200 100 B -100 -200 0 2 4 6 8 10 12 14 16 18 20 COST OF CAPITAL (Percent IRR WACC The point at which the NPV profile intersects the horizontal axis represents the WACC

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