Which of the Following Statements Is FALSE

question 27

Multiple Choice

Which of the following statements is FALSE?

• A)About 75% of firms surveyed used the NPV rule for making investment decisions.
• B)If you are unsure of your cost of capital estimate,it is important to determine how sensitive your analysis is to errors in this estimate.
• C)To decide whether to invest using the NPV rule,we need to know the cost of capital.
• D)NPV is positive only for discount rates greater than the internal rate of return.

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Definitions:

Social-Comparison

Social comparison is the process by which individuals evaluate their own abilities, achievements, and conditions in relation to others, which can influence their self-esteem and self-concept.

Thalamus

A structure in the brain that acts as a relay station for sensory information, directing it to the appropriate areas of the brain for processing.

Emotional Importance

The significance or value assigned to an experience or event based on the emotional impact it has.

Polygraph

A polygraph, commonly known as a lie detector test, is an instrument that measures and records several physiological indicators such as blood pressure, pulse, respiration, and skin conductivity while a person is asked and answers a series of questions.