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Which of the following statements is FALSE? Question content area bottom Part 1 A . If you are unsure of your cost of capital estimate,
Which of the following statements is FALSE?
Question content area bottom
Part
A
If you are unsure of your cost of capital estimate, it is important to determine how sensitive your analysis is to errors in this estimate.
B
About of firms surveyed used the NPV rule for making investment decisions.
C
To decide whether to invest using the NPV rule, we need to know the cost of capital.
D
NPV is positive only for discount rates greater than the internal rate of return.
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