Which of the Following Statements Is FALSE

question 105

Multiple Choice

Which of the following statements is FALSE?

• A)Positive NPVs arise only in situations in which a company has a competitive advantage.
• B)Projects that produce an NPV of zero should be rejected.
• C)The market value of any firm in an efficient market should equal the present value of its expected after-tax cash flows.
• D)Because of the competitive nature of today's business environment, we would not expect to see an abundance of positive NPV opportunities to persist for very long.

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