Which Statement Is False with Respect to the Decision Rule

Which statement is false with respect to the decision rule: accept a project if and only if [Return at Time 2 / (1 + i) - Δ] > 0?

A) The decision rule is completely consistent with Fisher's separation theorem.
B) The decision rule is the same as the net present value rule.
C) A company that always applies the decision rule to its investment decisions will be able to locate the optimal investment/dividend policy and will maximise the wealth of its shareholders.
D) None of the given options.

Correct Answer:

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