Which of the Following Statements Is FALSE

question 33

Multiple Choice

Which of the following statements is FALSE?

• A) Only include as incremental expenses in your capital budgeting analysis the additional overhead expenses that arise because of the decision to take on the project.
• B) Many projects use a resource that the company already owns.
• C) As a practical matter, to derive the forecasted cash flows of a project, financial managers often begin by forecasting earnings.
• D) When evaluating a capital budgeting decision, we generally include interest expense.