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Which of the statements below is FALSE? Question content area bottom Part 1 A . The net present value decision model is an economically sound
Which of the statements below is FALSE?
Question content area bottom
Part
A
The net present value decision model is an economically sound model when comparing different projects across a wide variety of products, services, and activities under capital constraint.
B
The greater the NPV of a project, the greater the "bag of money" for doing the project, and more money is better. If a company is short of capital, it would choose those projects that provide the largest "bag of money."
C
By discounting all future cash flows to the present, adding up all inflows, and subtracting all outflows, we are determining the net present value of the project.
D
Despite all of the advantages of using the NPV model, it is inconsistent with the concept of the timeminusvalueminusofminusmoney.
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