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:

Organizational Arrangement

The structured setup of roles, responsibilities, and relationships within an organization, designed to achieve specific goals.

Distributing Goods

The process of making products or commodities available to consumers or retailers in various locations.

Industrial Societies

Societies characterized by the widespread use of technology and machinery in the production process, leading to increased productivity and changes in social organization.

Seasonal Movement

The migration or movement of people or animals across different geographical areas depending on the season.