Which of the Following Statements Is FALSE

question 61

Multiple Choice

Which of the following statements is FALSE?

• A)The IRR investment rule will identify the correct decision in many,but not all,situations.
• B)By setting the NPV equal to zero and solving for r,we find the IRR.
• 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)The simplest,though least accurate,investment rule is the NPV investment rule.

---

Definitions:

Toxic Chemicals

Substances that can cause harm to humans, animals, plants, or the environment through their chemical composition and properties.

Three Mile Island

The site of a nuclear power plant in Pennsylvania, where a partial nuclear meltdown occurred in 1979, drawing widespread attention to nuclear safety issues.

Exxon Valdez

An oil tanker whose 1989 spill off the coast of Alaska caused one of the biggest environmental disasters in U.S. history.

Safeguards

Protective measures or mechanisms put in place to prevent harm, damage, or any other undesirable outcome.