Which of the following best describes the NPV profile?
A)A graph of a project's NPV as a function of possible IRRs.
B)A graph of a project's NPV over time.
C)A graph of a project's NPV as a function of possible capital costs.
D)None of these statements are correct.

Question

Quizplus · Accepted Answer

An NPV profile is a graph that shows the relationship between a project's Net Present Value (NPV) and various discount rates, which are often the project's cost of capital.

Which of the Following Best Describes the NPV Profile