Which of the Following Statements Is False

question 145

Multiple Choice

Which of the following statements is false?

• A) If a project has a profitability index greater than one the project should be accepted.
• B) If a firm's target average accounting return is less than that calculated for a given project then the project should be accepted.
• C) If the cost of capital is greater than the IRR, the project should be accepted.
• D) If a project has a payback which is faster than the company requires the project should be accepted.
• E) If the NPV of a project is positive, it should be accepted.

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Definitions:

Customer Complaints

Feedback or grievances voiced by customers regarding dissatisfaction with a product or service.

Declining Profits

A situation in which a business experiences a decrease in financial gains over a period, indicating challenges in revenue generation or cost management.

Force Field Analysis

A method for analyzing the forces that support or oppose a particular change, aiding in decision-making and problem-solving.

Marketing Dollars

The term refers to the budget allocated for marketing activities, including advertising, promotions, and public relations.