Which of the Following Statements Is FALSE

question 48

Multiple Choice

Which of the following statements is FALSE?

• A)When the investment cannot be delayed,the optimal rule is to invest whenever the profitability index is greater than zero.
• B)It is often better to wait too long (use a profitability index criterion that is too high)than to invest too soon (use a profitability index criterion that is too low).
• C)When the source of uncertainty that creates a motive to wait is interest rate uncertainty,the hurdle rate is relatively easy to calculate.
• D)When there is an option to delay,a good rule of thumb is to invest only when the profitability index is at least 1.

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Definitions:

Mission Statement

A concise explanation of an organization's purpose and core values, intended to guide its decisions and actions.

Key Stakeholders

Essential individuals or groups that have an interest, stake, or investment in the success of a project or organization.

Inspiring Vision

A compelling and motivational future scenario created by leaders to guide and unify organizational efforts towards achieving strategic goals.

Film-Photography

A method of capturing images by exposing a light-sensitive material coated onto a film base to light or other electromagnetic radiation.