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.

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Definitions:

Long-Term Romantic Partners

Individuals involved in a sustained romantic relationship characterized by emotional and often legal ties.

Empty Nest

A phase in parents' lives when their children have grown up and left home to pursue their own lives, often leading to feelings of loneliness or loss.

Unemployment

The condition of being without a job despite being willing and able to work, often measured as a percentage of the labor force.

Clinically Depressed

Refers to a person diagnosed with major depression, characterized by a persistent feeling of sadness or a lack of interest in external stimuli.