Options for #1 are either accepted or rejected

Options for #2 are WACC or IRR

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. 600 500 400 300 200 NPV (Dollars) 100 A OG B -100 -200 -300 82 18 18 20 6 8 10 12 14 COST OF CAPITAL (Percent) The project represented by triangle A should be The point at which the NPV profile intersects the horizontal axis represents the