Which of the Following Statements Is FALSE

question 62

Multiple Choice

Which of the following statements is FALSE?

• A)The ultimate goal in capital budgeting is to determine the effect on the firm's cash flows of the decision to take a particular project..
• B)To the extent that overhead costs are fixed and will be incurred in any case,they are incremental to the project and should be included in the capital budgeting analysis.
• C)Unlevered Net Income = (Revenue - Costs - Depreciation)× (1 - τc).
• D)Earnings are not cash flows.

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Definitions:

Franklin Roosevelt

Franklin D. Roosevelt, the 32nd President of the United States, who served four terms and led the country through the Great Depression and World War II.

Dunkirk

A city in France, site of a significant evacuation during World War II where Allied soldiers were rescued from advancing German forces in 1940.

Winston Churchill

A British statesman, army officer, and writer who served as Prime Minister of the United Kingdom during World War II and again in the early 1950s, known for his leadership and oratory skills.

America First Committee

An isolationist group that opposed American intervention in World War II prior to the attack on Pearl Harbor, advocating for the United States to prioritize domestic issues over international conflict.