Question: This chapter demonstrated that the requirement that new projects be accretive to ?rm EPS sometimes results in accepting negative-NPV projects and rejecting positive-NPV projects.However,under more

This chapter demonstrated that the requirement that new projects be accretive to ?rm EPS sometimes results in accepting negative-NPV projects and rejecting positive-NPV projects.However,under more restrictive circumstances, requiring that new investments be accretive to earnings may be consistent with the NPV criteria. Are the following statements true or false? Defend your answers.

a. If project earnings are expected to grow at the same rate as the ?rm

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