Question
Which of the following statements is incorrect? A) Most of the answers are correct except one. B) If the NPV is negative, the project should
Which of the following statements is incorrect?
A) Most of the answers are correct except one.
B) If the NPV is negative, the project should be rejected; projects with negative NPVs will decrease the value of the firm.
C) A project's payback period provides an objective measure of its incremental value to the firm's investors, and thus makes it simple to choose between two or more mutually exclusive projects.
D) Accepting a negative-NPV project decreases shareholder wealth.
E) A positive NPV project increases the value of the firm and stockholders' wealth
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