Accept or reject - Green

Accept or reject - Purple

NPV will - increase or decrease?

6. NPV profiles An NPV profile plots a project's NPV at various costs of capital. A project's NPV profile is shown as follows. Identify the range of costs of capital that a firm would use to accept and reject this project. NPV (Dollars] 400 300 200 100 -100 200 0 24 6 8 10 12 14 16 18 20 COST OF CAPITAL [Percent] This NPV profile demonstrates that as the cost of capital increases, the project's NPV