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The graph plotted for projected Net Present Value (NPV) against capital rates is called ____________?

In capital budgeting, the graph of NPV against discount rates (or cost of capital) is called the NPV Profile. It helps in understanding how project NPV changes with different discount rates and is essential for comparing multiple projects and identifying... Read More

1 FINANCE MCQS

The graph plotted for projected Net Present Value (NPV) against capital rates is called ____________?

  • Net loss profile
  • Net gain profile
  • Net future value profile
  • Net present value profile
Correct Answer: D. Net present value profile

Detailed Explanation

In capital budgeting, the graph of NPV against discount rates (or cost of capital) is called the NPV Profile. It helps in understanding how project NPV changes with different discount rates and is essential for comparing multiple projects and identifying IRR points.

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