Which of the Following Statements Is FALSE

question 59

Multiple Choice

Which of the following statements is FALSE?

• A)The terminal or continuation value of the project represents the market value (as of the last forecast period)of the free cash flow from the project at all future dates.
• B)The incremental effect of a project on the firm's available cash is the project's free cash flow.
• C)(1 - τc)× Depreciation is called the depreciation tax shield.
• D)To evaluate a capital budgeting decision,we must determine its consequences for the firm's available cash.

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Definitions:

Electronics

Devices or systems that operate using the flow and control of electrons in semiconductors, vacuum tubes, or other components.

Computers

Electronic devices capable of executing programmed instructions for processing data, performing calculations, and managing information.

Test Marketing

A strategy used by companies to evaluate the viability of a new product or service in a limited geographical area before a full-scale launch.

Price Rationing

The allocation of limited goods or services using prices, where higher prices curb demand to match the supply.