Question: For each statement state whether it is true or false and provide short explanations or comments: Reject projects with a NPV of zero, as such

For each statement state whether it is true or false and provide short explanations or comments:

  1. Reject projects with a NPV of zero, as such projects do not earn any return.
  2. When faced with a set of alternatives, choose the one with the highest NPV.
  3. Accept those projects with a positive NPV, as accepting them is equivalent to receiving their NPV in cash at the end of the projects and increases the value of the company in the future.
  4. Reject those projects with a negative NPV.

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