Which of the Following Statements Is FALSE

question 61

Multiple Choice

Which of the following statements is FALSE?

• A)Project externalities are direct effects of the project that may increase or decrease the profits of the business activities of other firms.
• B)Incremental earnings are the amount by which the firm's earnings are expected to change as a result of the investment decision.
• C)The average selling price of a product and its cost of production will generally change over time.
• D)Any money that has already been spent is a sunk cost and therefore irrelevant in the capital budgeting process.