Which of the Following Statements Is FALSE

question 21

Multiple Choice

Which of the following statements is FALSE?

• A)The firm deducts a fraction of the investments in plant,property,and equipment each year as depreciation.
• B)If securities are fairly priced,the net present value of a fixed set of cash flows is independent of how those cash flows are financed.
• C)Sunk cost fallacy is a term used to describe the tendency of people to ignore sunk costs in capital budgeting analysis.
• D)A good rule to remember is that if our decision does not affect a cash flow then the cash flow should not affect our decision.

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Definitions:

Use Value

The utility of a good or service for satisfying a need or providing a benefit to the user, as opposed to its exchange value or price.

Emancipatory Subject

An individual or collective agent engaged in actions and discourses aiming at liberation from oppressive conditions or structures.

Unpaid Labor

Work that does not receive monetary compensation, such as household chores, caregiving, and volunteer services, which often remains undervalued in economic analyses.

Gender

A social construct that refers to the roles, behaviors, activities, and attributes that a given society considers appropriate for men, women, and other gender identities.