Which of the Following Statements Is False

question 140

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:

Wound Culture

A laboratory test involving the growth of microorganisms from a wound to identify an infection.

Exudate

Fluid, such as pus or clear fluid, that leaks out of blood vessels into nearby tissues as a response to inflammation.

Jaundice

A yellowish pigmentation of the skin, tissues, and body fluids caused by the overproduction or poor metabolism of bilirubin.

Jaund

Likely an abbreviation or typo for "jaundice," which is a yellowing of the skin or whites of the eyes due to increased bilirubin levels.