Which of the Following Statements Is FALSE

question 105

Multiple Choice

Which of the following statements is FALSE?

• A)Positive NPVs arise only in situations in which a company has a competitive advantage.
• B)Projects that produce an NPV of zero should be rejected.
• C)The market value of any firm in an efficient market should equal the present value of its expected after-tax cash flows.
• D)Because of the competitive nature of today's business environment, we would not expect to see an abundance of positive NPV opportunities to persist for very long.

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Definitions:

Report

A structured account or document detailing the findings or results of a specific investigation, study, or analysis.

Confuse Readers

To present information in a way that makes it difficult for the audience to understand or follow the intended message.

Interview

A formal conversation between two or more people where questions are asked by the interviewer to obtain information from the interviewee.

Closed-Ended Questions

Questions formulated in a way that limits responses to specific choices, such as "yes" or "no," making them easy to analyze.