Which of the Following Statements Is FALSE

question 5

Multiple Choice

Which of the following statements is FALSE?

• A)A simple method often used to calculate depreciation is the straight-line method.
• B)A sunk cost is any unrecoverable cost for which the firm is already liable.
• C)Unlevered Net Income = EBIT × τc.
• D)The decision to continue or abandon a project should be based only on the incremental costs and benefits of the project going forward.

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Definitions:

Higher Tariffs

Increased taxes imposed on imported goods with the aim of protecting domestic industries, reducing trade deficits, or retaliating against trading partner policies.

Import Restrictions

Government-imposed limitations on the quantity or type of goods that can be brought into a country.

U.S. Jobs

Employment positions located within the United States across various industries.

Tariffs or Quotas

Government-imposed restrictions on international trade, with tariffs being taxes on imported goods and quotas being limits on the quantity of goods that can be imported.