Which of the Following Statements Is FALSE

question 13

Multiple Choice

Which of the following statements is FALSE?

• A) We can use scenario analysis to evaluate alternative pricing strategies for our project.
• B) Scenario analysis considers the effect on net present value (NPV) of changing multiple project parameters.
• C) The difference between the internal rate of return (IRR) of a project and the cost of capital tells you how much error in the cost of capital it would take to change the investment decision.
• D) Scenario analysis breaks the net present value (NPV) calculation into its component assumptions and shows how the net present value (NPV) varies as each one of the underlying assumptions changes.

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Definitions:

Dimensions

Aspects or features that can be used to differentiate or categorize items, concepts, or phenomena along a spectrum.

Big Five Traits

The Big Five traits refer to five broad dimensions of personality that include openness, conscientiousness, extraversion, agreeableness, and neuroticism, widely used in psychology to describe human personality.

Agreeableness

This refers to a personality trait that encompasses qualities like kindness, affection, cooperation, and a willingness to help others.

Personality Factors

The fundamental traits and characteristics that consistently determine individuals' thoughts, feelings, and behaviors, making up their personality.