Which of the Following Statements Is FALSE

question 27

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.

---

Definitions:

Serotonin Levels

The concentration of the neurotransmitter serotonin in the body, which is implicated in regulating mood, appetite, and sleep, among other functions.

Violent Video Games

Video games that feature scenes of violence, which are sometimes speculated to influence aggressive behavior in players.

Violent Television

TV content that graphically depicts acts of physical aggression and violence.

Habitual Drinker

An individual who regularly consumes alcohol, often to the point where it becomes a routine or automatic behavior.