Which statement is false with respect to the decision rule: accept a project if and only if [Return at Time 2 / (1 + i)- Δ] 0?

Question

Which statement is false with respect to the decision rule: accept a project if and only if [Return at Time 2 / (1 + i)- Δ] > 0?

Quizplus · Accepted Answer

The provided decision rule is a variation of the Net Present Value (NPV) rule, which is consistent with Fisher's separation theorem and aims at maximizing shareholder wealth by accepting projects with a positive NPV. Therefore, none of the statements A, B, or C is false; they all align with the principles of corporate finance and investment theory.

Which Statement Is False with Respect to the Decision Rule