Which of the Following Statements Is False

question 22

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.

---

Definitions:

Balance The Ticket

A strategy used in politics to choose candidates who complement each other's strengths or appeal to diverse voter groups.

Affirmative Action

Policies or practices intended to combat discrimination and promote opportunities in employment or education for historically marginalized groups.

Proportional Representation

A voting mechanism where parties receive a number of seats that correspond to their share of the overall vote.

Socioeconomic Status

An individual's or group's position within a hierarchical social structure, often measured by factors such as income, education, and occupation.