Which One of the Following Statements Is NOT True

question 53

Multiple Choice

Which one of the following statements is NOT true?

• A) Accepting a positive-NPV project increases shareholder wealth.
• B) Accepting a negative-NPV project has no impact on shareholder wealth.
• C) Accepting a negative-NPV project decreases shareholder wealth.
• D) Managers are indifferent about accepting or rejecting a zero NPV project.

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Definitions:

Personal Expertise

The unique skills, knowledge, and experience possessed by an individual in a particular field or area.

Credibility

The quality or state of being believable or trustworthy, often assessed based on past actions, reliability, and integrity.

Central Route

A method of persuasion that involves presenting detailed and argumentative information to promote thoughtful and considered message processing.

Petty and Cacioppo

Researchers known for their elaboration likelihood model of persuasion, which explains how attitudes are formed and changed through different routes of information processing.