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Which of the Following Statements Is FALSE

Question 83

Multiple Choice

Which of the following statements is FALSE?


A) Contingent projects are projects for which the acceptance of one requires the acceptance of another, either beforehand or simultaneously.
B) The chain replication approach is a way to compare projects with equal lives by finding a time horizon into which all the project lives under consideration divide equally, and then assuming each project repeats until it reaches this horizon.
C) The equivalent annual NPV approach is a way to compare projects by finding the NPV of the individual projects, and then determining the amount of an annual annuity that is economically equivalent to the NPV generated by each project over its respective time horizon.
D) Mutually exclusive projects require the firm to choose one project over another.

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