Which of the Following Statements Is FALSE

question 75

Multiple Choice

Which of the following statements is FALSE?

• A) The payback rule is useful in cases where the cost of making an incorrect decision might not be large enough to justify the time required for calculating the net present value (NPV).
• B) The payback rule is reliable because it considers the time value of money and depends on the cost of capital.
• C) For most investment opportunities, expenses occur initially and cash is received later.
• D) Fifty percent of firms surveyed reported using the payback rule for making decisions.

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Definitions:

Host-country Complaints

Grievances or objections raised in the country where a foreign business operates, often related to the business's practices.

Multinational Corporations

Large companies that operate and provide goods or services in multiple countries beyond their home country's borders.

Global Corporations

Large business entities operating in multiple countries around the world, often having a significant impact on global trade, economics, and cultural exchanges.

Cultural Intelligence

The ability to adapt, adjust, and work well across cultures.