Which of the Following Statements Is FALSE

question 34

Multiple Choice

Which of the following statements is FALSE?

• A) In general, the difference between the cost of capital and the internal rate of return (IRR) is the maximum amount of estimation error in the cost of capital estimate that can exist without altering the original decision.
• B) The internal rate of return (IRR) can provide information on how sensitive your analysis is to errors in the estimate of your cost of capital.
• C) 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.
• D) If the cost of capital estimate is more than the internal rate of return (IRR), the net present value (NPV) will be positive.

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Definitions:

Nurture

The influence of environmental factors on one's physical and psychological development, as opposed to genetic factors.

Skinner

B.F. Skinner, an American psychologist known for his work in behaviorism and the development of the theory of operant conditioning.

Language Acquisition

The method through which people develop the ability to notice, create, and apply words for the purposes of understanding and interaction.

Telegraphic Speech

A form of communication typical in young children, consisting of short and simple sentences.