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11. Which of the following statements is CORRECT?

11.
Which of the following statements is CORRECT?
A) An NPV profile graph shows how a project�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 project�s risk varies with its life.
D) We cannot draw a project�s NPV profile unless we know the appropriate WACC for use in evaluating the project�s NPV.
E) An NPV profile graph is designed to give decision makers an idea about how a project�s contribution to the firm�s value varies with the cost of capital.

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