Which of the following statements is correct?
A) According to a 1995 study, less than 80% of Canadian firms used the rule of NPV, but about 50% of firms used some form of discounted cash flow analysis.
B) According to a 1995 study, less than 50% of Canadian firms used the rule of NPV, but about 79% of firms used some form of discounted cash flow analysis.
C) According to a 1995 study, every Canadian firm used the rule of NPV, and about 80% of firms used some form of discounted cash flow analysis.
D) According to a 1995 study, no Canadian firms used the rule of NPV, but about 79% of firms used some form of discounted cash flow analysis.

Question

Quizplus · Accepted Answer

The statement in option B is the closest to the truth based on the information given, stating that less than 50% of firms used NPV (implying that some did not), but about 79% used some form of discounted cash flow analysis. The other options are either overstated or contradictory.

Which of the Following Statements Is Correct