Which of the Following Statements Is FALSE

question 35

Multiple Choice

Which of the following statements is FALSE?

• A)In general,the difference between the cost of capital and the IRR is the maximum amount of estimation error in the cost of capital estimate that can exist without altering the original decision.
• B)The IRR can provide information on how sensitive your analysis is to errors in the estimate of your cost of capital.
• C)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.
• D)If the cost of capital estimate is more than the IRR,the NPV will be positive.

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Definitions:

Serous Membrane

A thin membrane that covers internal body cavities and secretes a fluid that reduces friction from muscle movement.

Lungs

Paired respiratory organs situated within the chest, responsible for exchanging oxygen and carbon dioxide between the blood and air.

Sural Region

Pertains to the calf area of the leg, where the sural nerve is also located, providing sensory information.

Calf

The back portion of the lower leg in humans, or a young bovine animal.