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Which of the following statements is FALSE? Select one or more: To decide whether to invest using the NPV rule, we need to know the
Which of the following statements is FALSE? Select one or more: To decide whether to invest using the NPV rule, we need to know the cost of capital. NPV is positive only for discount rates greater than the internal rate of return. Using the NPV rule corresponds to maximizing shareholder value. If you are unsure of the assumptions you have used to create a cash flow pro forma, it is important to determine how sensitive your analysis is to errors in those assumptions. Using the IRR for capital budgeting requires the same amount of assumptions as the NPV rule
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