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Which of the Following Statements Regarding the NPV Decision Rule

Question 12

Multiple Choice

Which of the following statements regarding the NPV decision rule is FALSE?


A) Reject projects with a NPV of zero,as accepting them is equivalent to reducing firm value.
B) When faced with a set of alternatives,choose the one with the highest NPV.
C) Accept those projects with a positive NPV,as accepting them is equivalent to receiving their NPV in cash today.
D) Reject those projects with a negative NPV.

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