Which of the Following Statements Regarding the NPV Decision Rule

question 65

Multiple Choice

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

• A) Reject projects with an NPV of zero, as accepting them is equivalent to losing the present value of the projects' costs.
• 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, as not doing them has NPV = 0.

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Definitions:

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An approach to marketing that seeks to balance company profits, customer satisfaction, and societal well-being by focusing on socially responsible and ethical practices.

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A type of marketing in which a company and a nonprofit organization work together to promote and raise funds for a particular cause or social issue.

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