Which of the Following Statements Is FALSE

question 33

Multiple Choice

Which of the following statements is FALSE?

• A)Contingent projects are projects for which the acceptance of one requires the acceptance of another, either beforehand or simultaneously.
• B)The chain replication approach is a way to compare projects with equal lives by finding a time horizon into which all the project lives under consideration divide equally, and then assuming each project repeats until it reaches this horizon.
• C)The equivalent annual NPV approach is a way to compare projects by finding the NPV of the individual projects, and then determining the amount of an annual annuity that is economically equivalent to the NPV generated by each project over its respective time horizon.
• D)Mutually exclusive projects require the firm to choose one project over another.

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Definitions:

Optimists

Individuals who generally believe that positive events are more likely to occur than negative ones in the future.

Good Events

Occurrences that have a favorable outcome or bring happiness, well-being, or satisfaction.

Longitudinal Evidence

Data gathered from the same subjects repeatedly over a period of time to observe changes and developments, providing insight into effects and patterns that emerge over the long term.

Pessimist

An individual who tends to see the worst aspect of things or believe that the worst will happen; a lack of hope or confidence in the future.