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What is the NPV profile?

帮考网校2020-10-12 14:04:11
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The NPV (Net Present Value) profile is a graphical representation of how changes in discount rates or cash flows affect a project's NPV. It shows the relationship between the discount rate and the project's NPV, indicating the rate at which the project becomes profitable or unprofitable. The NPV profile helps decision-makers to understand the sensitivity of the project's NPV to changes in key assumptions and to determine the optimal discount rate for the project.
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