Which of the Following Statements Is False

question 26

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:

Specific Conditions

Distinct or particular diseases, disorders, or situations affecting an individual’s health.

Lavender

A fragrant plant known for its purple flowers, often used in aromatherapy for its calming and relaxing properties.

Neroli

An essential oil made from the blossom of the bitter orange tree, used for its fragrance and in aromatherapy.

Tea Tree

A plant native to Australia known for its essential oil, which is used for its antibacterial, antifungal, and antiviral properties.