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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Definitions:

Fair Competition

An economic condition in which businesses operate on a level playing field, with no unfair advantages, allowing for healthy competition in the market.

Gender Roles

Social and cultural expectations associated with a person's sex, influencing behaviors, interests, and personal values.

Promotion

The marketing efforts and strategies aimed at increasing awareness, interest, and sales of a product or service.

Company's Products

The goods or services that a company offers to customers, often characterized by quality, features, and branding.