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#analyst-notes #cfa-level-1 #reading-35-capital-budgeting #study-session-10
The point where a project's net present value profile crosses the horizontal axis indicates a project's internal rate of return.

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Subject 4. NPV Profiles
A NPV profile is a graph showing the relationship between a project's NPV and the firm's cost of capital. The point where a project's net present value profile crosses the horizontal axis indicates a project's internal rate of return. Some observations: The IRR is the discount rate that sets the NPV to 0. The NPV profile declines as the discount rate increases. Project A


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