Which of the Following Statements Is FALSE

question 12

Multiple Choice

Which of the following statements is FALSE?

• A)We begin the capital budgeting process by determining the incremental earnings of a project.
• B)The marginal corporate tax rate is the tax rate the firm will pay on an incremental dollar of pre-tax income.
• C)Investments in plant,property,and equipment are directly listed as expenses when calculating earnings.
• D)The opportunity cost of using a resource is the value it could have provided in its best alternative use.

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Definitions:

Hormone

A chemical messenger produced by glands in the body, which regulates various bodily functions and processes.

Closeness

The quality of feeling familiar, intimate, or emotionally connected with someone or something.

Defensive Pessimism

Thinking negative thoughts to prepare for negative outcomes.

Pessimistic Explanatory Style

Seeing bad events as all-encompassing.