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5. NPV profiles An NPV profile plots a projects NPV at various costs of capital. A projects NPV profile is shown in the gra

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THE GREEN AREA SHOWS THAT NPV FOR THE PROJECT IS POSITIVE

THE PURPLE AREA SHOWS THAT NPV FOR THE PROJECT IS NEGATIVE

A : ACCEPT

B : REJECT

The point at which the NPV profile intersects the horizontal axis represents the INTERNAL RATE OF RETURN.

The Internal rate of return is the point where the project has NPV =0 (Thumbs up please)

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