A project's net present value profile shows how sensitive the project is to the choice of a discount rate.

Name: A project's net present value profile shows how sensitive the project is to the choice of a discount rate.
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The statement is true. The net present value profile illustrates the relationship between different discount rates and the net present value of a project. It shows how sensitive the project's profitability is to changes in the discount rate used to calculate the net present value.

A Project's Net Present Value Profile Shows How Sensitive the Project