Which one of the following statements is NOT true?
A) Accepting a positive-NPV project increases shareholder wealth.
B) Accepting a negative-NPV project decreases shareholder wealth.
C) Accepting a zero NPV project has a negative impact on shareholder wealth.
D) Managers are indifferent about accepting or rejecting a zero NPV project.

Question

Quizplus · Accepted Answer

Accepting a zero NPV project does not have a negative impact on shareholder wealth, but rather it has no impact on shareholder wealth. Managers may still choose to accept or reject a zero NPV project based on other factors such as strategic fit or the potential for other long-term benefits.

Which One of the Following Statements Is NOT True