Which of the Following Statements Is False

question 30

Multiple Choice

Which of the following statements is false?

• A)By ignoring intangible benefits, capital budgeting techniques might incorrectly eliminate projects that could be beneficial to the company.
• B)To avoid accepting projects that actually should be rejected, a company should ignore intangible benefits in calculating net present value.
• C)One way of incorporating intangible benefits into the capital budgeting decision is to project conservative estimates of the value of the intangible benefits and include them in the NPV calculation.
• D)Intangible benefits include increased quality, improved safety or greater employment loyalty.

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Definitions:

Misestimate Sizes

The incorrect estimation or perception of the actual size or magnitude of an object.

Convergence

In psychology, it refers to the coming together of sensory information or ideas to form a new, unified perspective; in physics, it's the inward bending of the eyes toward each other to focus on a close object.

Cue To Distance

A sensory signal or perception that helps in estimating the distance between the observer and a target object.

Eye Muscles

Muscles surrounding the eyes that enable movements such as looking up, down, and side to side.