Which of the Following Statements Is FALSE

question 52

Multiple Choice

Which of the following statements is FALSE?

• A)The payback rule is useful in cases where the cost of making an incorrect decision might not be large enough to justify the time required for calculating the NPV.
• B)The payback rule is reliable because it considers the time value of money and depends on the cost of capital.
• C)For most investment opportunities,expenses occur initially and cash is received later.
• D)Fifty percent of firms surveyed reported using the payback rule for making decisions.

---

Definitions:

Modified Hinge Joint

A type of synovial joint that allows predominantly bending motion like a hinge but with limited rotational movement for added flexibility.

Condylar Joint

A type of synovial joint that allows movement but is constrained to one axis; for example, the joint between the skull and the atlas (first cervical vertebra).

Hyperextension

An excessive extension of a limb or part of the body beyond its normal limit.

Circumduction

A movement at a synovial joint where the limb moves in a circle.