Question

Pick up the correct statement from the following:

a.

A NPV profile graph shows the curvilinear relationship between the net present value of the project and discount rate employed.

b.

In a NPV profile, if discount rate is zero, then net present value is simply total cash inflows less the total cash outflows of the project.

c.

As the discount rate increases, the net present value profile slopes downward to the right.

d.

All of these

Answer: (d).All of these

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