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NPV and Value Maximization

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?

Solution Preview

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 ...

Solution Summary

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

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