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:

Oxygen

A chemical element with symbol O and atomic number 8, essential for most forms of life on Earth, involved in breathing and combustion processes.

Generative Cell

In plant biology, a cell within the pollen grain that divides to form two sperm cells during the process of fertilization.

Sperm Cells

Male reproductive cells designed to fertilize female eggs.

Ovule

The part of the ovary of seed plants that contains the female germ cell and after fertilization becomes the seed.