Which of the Following Statements Is FALSE

question 37

Multiple Choice

Which of the following statements is FALSE?

• A)Sales will ultimately decline as the product nears obsolescence or faces increased competition.
• B)Managers sometimes continue to invest in a project that has a negative NPV because they have already invested a large amount in the project and feel that by not continuing it,the prior investment will be wasted.
• C)With straight-line depreciation the asset's cost is divided equally over its life.
• D)A project's unlevered net income is equal to its incremental revenues less costs and depreciation,evaluated on a pre-tax basis.

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Definitions:

Jean Piaget

A Swiss psychologist known for his pioneering work in child development, especially his theory of cognitive development.

Built-In Reactions

Inherent responses present from birth that are physiologically based and do not need to be learned, such as reflexes or instinctive behaviors.

Reflexes

Automatic, involuntary responses or movements produced by the nervous system in reaction to external stimuli.

Stimuli

External or internal factors that elicit a physiological or psychological response.