What is the NPV profile？

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.