Which of the Following Statements Regarding the NPV Decision Rule

question 77

Multiple Choice

Which of the following statements regarding the NPV decision rule is false?

• A) Reject projects with a NPV of zero, as accepting them is equivalent to reducing firm value.
• B) When faced with a set of alternatives, choose the one with the highest NPV.
• C) Accept those projects with a positive NPV, as accepting them is equivalent to receiving their NPV in cash today.
• D) Reject those projects with a negative NPV..

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