The graph which is plotted for projected net present value and capital rates is called ___________?
Correct answer: D. net present value profile
- A. net loss profile
- B. net gain profile
- C. net future value profile
- D. net present value profile
Explanation
An NPV profile is a graph showing how a project's net present value changes as the discount rate or cost of capital changes. It also indicates the rate at which NPV becomes zero, namely the IRR.
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About Business Finance
Business finance explains how organisations plan, obtain and use money while balancing risk, return and liquidity. Topics include financial statements, time value of money, budgeting, working capital, capital structure, sources of finance, investment appraisal and cost of capital. Capital budgeting evaluates long-term projects, whereas working capital manages day-to-day operations.
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