[Anantx07]

Okay, thank you

[Anantx07]

Thank you for the detailed explanation but here i have a one more doubt that as you said as cost of capital increases the NPV decreases so why after 25% the NPV is increasing ??

[Anantx07]

Here is the solution as well i was not able to understand the solution as well:

Answer A
The graph would be U-shaped with a negative NPV between 10% and
25% and positive NPVs at less than 10% or more than 25%.

[Author]

Posts