Which of the Following Statements Is FALSE

question 52

Multiple Choice

Which of the following statements is FALSE?

• A)The payback rule is useful in cases where the cost of making an incorrect decision might not be large enough to justify the time required for calculating the NPV.
• B)The payback rule is reliable because it considers the time value of money and depends on the cost of capital.
• C)For most investment opportunities,expenses occur initially and cash is received later.
• D)Fifty percent of firms surveyed reported using the payback rule for making decisions.

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Definitions:

American Liberties

Refers to the rights and freedoms guaranteed to individuals in the United States by the Constitution and other laws, such as freedom of speech, religion, and the press.

Patriot Position

The stance taken by colonists in the Thirteen Colonies who supported independence from British rule during the American Revolutionary War.

Parliamentary Authority

A set of rules governing the procedures and operations of a parliamentary body, often codified in a written document.

British Mind

Reflects the intellectual, cultural, and historical perspectives or mentality characteristic of the British people or Britain as a whole.