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NPV and Value Maximization

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The NPV rule, which says companies should invest in projects for which NPV is greater than 0, depends on the assumption of value maximization.

True or false?

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Solution Summary

This solution explains if the statement listed is true or false, and also explains the statement itself.

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This is false because it is worded incorrectly. The last part isn't true. It should state:

The NPV rule, which says companies should invest in ...

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