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Which of the following statements is false? To decide whether to invest using the NPV rule, we need to know the cost of capital. If
Which of the following statements is false?
- To decide whether to invest using the NPV rule, we need to know the cost of capital.
- 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.
- NPV is positive only for discount rates greater than the internal rate of return.
- About 75% of firms surveyed used the NPV rule for making investment decisions.
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Intermediate Accounting Reporting and Analysis
Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach
2nd edition
9781305727557, 1285453824, 9781337116619, 130572755X, 978-1285453828
