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3. Which of the following statements are not true? i. As a shareholder of the firm who is contemplating a new project, we should be
3. Which of the following statements are not true? i. As a shareholder of the firm who is contemplating a new project, we should be more concerned with the financial break-even point than the accounting break-even point. ii. Traditional NPV analysis tends to overestimate the true value of a project since, it ignores the value of the real options embedded in the project. iii. For a project with conventional cashflows, we will always reach the financial breakeven point before the accounting break-even since, financial profitability correctly accounts for the timing and the riskiness of the cashflows. iv. The greater the cash outflows, the more likely the project has a negative net present value, all else the same
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