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Which of the Following Statements Is FALSE

Question 39

Multiple Choice

Which of the following statements is FALSE?


A) The higher the minimum desired rate of return, the lower the present value of each future cash flow.
B) Higher required rates of return lead to lower net present values for capital investments.
C) Higher required rates of return lead to higher net present values for capital investments.
D) The net present value for a project can be negative or positive depending on the minimum desired rate of return used.

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