***The options for A & B are "ACCEPT" or "REJECT"***

5. NPV profiles An NPV profile plots a project's NPV at various costs of capital, labeled "A" and "B" in the graph. A project's NPV profile is shown as follows. Identify the range of costs (ranges labeled "A" and "3") of capital that a firm would use to accept and reject this project. a NPV (Dollars 400 300 200 100 0 B - 100 -200 0 2 4 6 8 10 12 14 16 18 20 COST OF CAPITAL (Percent) IRR B WACC The point at which the NPV profile intersects the horizontal axis represents the