Question: Interactive Illustration 2 allows you to view the NPV over a range of different cash flows and rates of return. Experiment with the application and

Interactive Illustration 2 allows you to view the NPV over a range of different cash flows and rates of return. Experiment with the application and see what general trends you can find.
How does the NPV change with the cost of capital? How can you explain this relation in terms of financial concepts?
How does the pattern of cash flows affect the NPV? How can you best explain your results?
I am primarily asking that you play around with the numbers with the goal of gaining an intuitive understanding of how cash flows and rates of return affect the NPV and when changes in these variables are likely to have the least and the greatest impact on the NPV.

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