Which of the following statements is false? (You may select more than one answer.)a. The payback period increases as the cost of capital decreases.b. The simple rate of return will be the same for two alternatives that have identicalcash flow patterns even if the pattern of accounting net operating income differsbetween the alternatives.c. The internal rate of return will be higher than the cost of capital for projects thathave positive net present values.d. If two alternatives have the same present value of cash inflows, the alternative thatrequires the higher investment will have the higher project profitability index.

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Which of the following statements is false? (You may select more than one answer.)
a. The payback period increases as the cost of capital decreases.
b. The simple rate of return will be the same for two alternatives that have identical
cash flow patterns even if the pattern of accounting net operating income differs
between the alternatives.
c. The internal rate of return will be higher than the cost of capital for projects that
have positive net present values.
d. If two alternatives have the same present value of cash inflows, the alternative that
requires the higher investment will have the higher project profitability index.

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