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:

Special Qualifications

Distinctive credentials or certifications that demonstrate expertise or competency in a specific area or profession.

Barbers

Professionals trained in cutting, styling, and grooming hair and facial hair, traditionally focusing on male clientele.

Hyperactivity And Inattentiveness

Behavioral disorders characterized by above-normal levels of physical activity, impulsiveness, and difficulty maintaining focus or attention.

Psychiatric Condition

A mental disorder diagnosed by a medical professional that significantly affects an individual's cognitive, emotional, or social abilities.