Which of the Following Statements Is FALSE

question 27

Multiple Choice

Which of the following statements is FALSE?

• A)About 75% of firms surveyed used the NPV rule for making investment decisions.
• B)If you are unsure of your cost of capital estimate,it is important to determine how sensitive your analysis is to errors in this estimate.
• C)To decide whether to invest using the NPV rule,we need to know the cost of capital.
• D)NPV is positive only for discount rates greater than the internal rate of return.

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Definitions:

Missing Data

Situations where information that was supposed to be collected or recorded is not available, potentially impacting analysis or decision-making.

Pie Chart

A circular statistical graphic divided into slices to illustrate numerical proportion.

Subdivisions

The act or process of dividing something into smaller parts, sections, or categories for detailed examination or organization.

Percentage Changes

Percentage changes quantify the relative difference between two values as a percent, serving as a useful measure to describe growth, decline, or variation over time.