S. 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 "B") of capital that a firm would use to accept and reject this project. NPV Dollars B 300 200 100 9 -200 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 "B") of capital that a firm would use to accept and reject this project. NPV Dollars! -100 10 12 14 16 18 20 COST OF CAPITAL (Percent -200 8 246810 12 14 16 18 20 COST OF CAPITAL (Percent Accept This N Reject demonstrates that as the cost of capital increases, the project's NPV

Fig: 1