A net present value profile is a useful tool for evaluating the sensitivity of a project's NPV to changes in required return.

Name: A net present value profile is a useful tool for evaluating the sensitivity of a project's NPV to changes in required return.
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Quizplus · Accepted Answer

A net present value profile is a graph that shows how the net present value of a project changes at different discount rates. It is used to evaluate the sensitivity of a project's NPV to changes in required return. Therefore, the statement is true.

A Net Present Value Profile Is a Useful Tool for Evaluating