Which of the statements below is FALSE?
A)The NPV decision criterion is true when all projects are independent and the company has a sufficient source of funds to accept all positive NPV projects.
B)Two projects are mutually exclusive if the acceptance of one project has no bearing on the acceptance or rejection of the other project.
C)Projects are mutually exclusive if picking one project eliminates the ability to pick the other project.
D)If a company has constrained capital,then it can only take on a limited number of projects.

Question

Quizplus · Accepted Answer

B) is false because it inaccurately describes mutually exclusive projects. Mutually exclusive projects are those where the acceptance of one project prevents the acceptance of another, not when one project's acceptance has no bearing on the other.

Which of the Statements Below Is FALSE