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Ch 11- Assignment - The Basics of Capital Budgeting

NPVD

300

2410 12 14 16 18 20

COST OF CAPITAL (Percent

Accept

Reject

This NPV profile demonstrates that as the cost of capital increases, the project's NPV

Ch 11- Assignment - The Basics of Capital Budgeting

-200

NPV Dolar

26610 12 14 16 18 20

COST OF CAPITAL (Percent

decreases

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Fig: 1