Which of the Following Statements Is FALSE

question 51

Multiple Choice

Which of the following statements is FALSE?

• A)When evaluating a capital budgeting decision,the correct tax rate to use is the firm's average corporate tax rate.
• B)To determine the capital budget,firms analyze alternative projects and decide which ones to accept through a process called capital budgeting.
• C)A new product typically has lower sales initially,as customers gradually become aware of the product.
• D)Sunk costs have been or will be paid regardless of the decision whether or not to proceed with the project.