Which of the Following Statements Is False

question 17

Multiple Choice

Which of the following statements is false?

• A)The rejection of positive net present value projects by management is inconsistent with the objective of maximising shareholder wealth even if the reason for rejection is due to internal capital rationing.
• B)Management may select a project with a lower net present value because qualitative factors may render the other project less attractive.
• C)The equivalent annual value of a project is equal to the net present value of a project held in perpetuity,divided by the required rate of return.
• D)None of the given options

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