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Which of the Following Is True of NPV Profile

Question 63

Multiple Choice

Which of the following is true of NPV profile?


A) It is used for evaluating and comparing independent projects when conflicting ranking exists.
B) It is a graph that illustrates a project's IRR against various values of NPV.
C) It shows an inverse relationship between a project's IRR and NPV.
D) It charts the net present value of a project as a function of the cost of capital.

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