Which of the Following Statements Regarding the NPV Decision Rule

question 12

Multiple Choice

Which of the following statements regarding the NPV decision rule is FALSE?

• A)Reject projects with a NPV of zero,as accepting them is equivalent to reducing firm value.
• B)When faced with a set of alternatives,choose the one with the highest NPV.
• C)Accept those projects with a positive NPV,as accepting them is equivalent to receiving their NPV in cash today.
• D)Reject those projects with a negative NPV.

---

Definitions:

Limited Partnerships

A business formation where one or more general partners manage the business and are personally liable, while limited partners invest but have limited liability and do not manage business operations.

Limited Partnership

A partnership structure where at least one partner has unlimited liability (general partner) and the rest have limited liability (limited partners), protecting them from debts beyond their investment.

Certificate of Limited Partnership

A legal document filed with a state by the general partners of a limited partnership that details the partnership's structure and operations.

Secretary of State

A high-ranking government official responsible for foreign affairs in the United States, or state government affairs in some U.S. states.