The NPV profile: O A. shows the payback period-the point at which NPV is positive. B. shows the internal rate of return-the point at which NPV is zero. O C. shows the NPV over a range of discount rates. O D. B and C are correct.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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The NPV profile:
O A. shows the payback period the point at which NPV is positive.
O B. shows the internal rate of return the point at which NPV is zero.
OC. shows the NPV over a range of discount rates.
O D. B and C are correct.
Transcribed Image Text:The NPV profile: O A. shows the payback period the point at which NPV is positive. O B. shows the internal rate of return the point at which NPV is zero. OC. shows the NPV over a range of discount rates. O D. B and C are correct.
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