Which of the Following Is NOT Correct

question 219

Multiple Choice

Which of the following is NOT correct?

• A) NPV is one of the two or three most important concepts in finance.
• B) NPV is always just the difference between the market value of an asset or project and its cost.
• C) The financial manager acts in the shareholders' best interests by identifying and taking positive NPV projects.
• D) NPV's can normally be directly observed in the market.
• E) Investment criteria other than NPV provide additional information about whether or not a project truly has a positive NPV.

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