Which of the following statements are false? 1. Scenario analysis is best suited to identifying the potential range of reasonable outcomes. 2. Best-case analysis would include the lowest level of anticipated tax rate. 3. For a project with a payback period that exactly equals the project's life, the project NPV is negative. 4. For a normal project, when operating at cash flow breakeven, its IRR is less than the required rate of return. 0000 Statement one (1) is false. Statement two (2) is false. Statement three (3) is false. Statement four (4) is false.

Which of the following statements are false? 1. Scenario analysis is best suited to identifying the potential range of reasonable outcomes. 2. Best-case analysis would include the lowest level of anticipated tax rate. 3. For a project with a payback period that exactly equals the project's life, the project NPV is negative. 4. For a normal project, when operating at cash flow breakeven, its IRR is less than the required rate of return. 0000 Statement one (1) is false. Statement two (2) is false. Statement three (3) is false. Statement four (4) is false.

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter17: Long-term Investment Analysis

Section: Chapter Questions

Problem 3E

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