Which of the following statements is CORRECT?
A) An NPV profile graph shows how a projectâ��s payback varies as the cost of capital changes.
B) The NPV profile graph for a normal project will generally have a positive (upward) slope as the life of the project increases.
C) An NPV profile graph is designed to give decision makers an idea about how a projectâ��s risk varies with its life.
D) We cannot draw a projectâ��s NPV profile unless we know the appropriate WACC for use in evaluating the projectâ��s NPV.
E) An NPV profile graph is designed to give decision makers an idea about how a projectâ��s contribution to the firmâ��s value varies with the cost of capital.
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