Which of the following statements is FALSE?
A) About 75% of firms surveyed used the NPV rule for making investment decisions.
B) 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.
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.
Correct Answer:
Verified
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