All of the Following Statements Are Correct EXCEPT

question 43

Multiple Choice

All of the following statements are correct EXCEPT:

• A)Capital budgeting analysis is a framework for evaluating all business decisions; it is not only a tool for the "financial" types.
• B)Proper analysis will identify relevant cash flows and an appropriate discount rate to reflect the risk of the strategy and will compare the benefits and costs of the project by considering the time value of money.
• C)Whether the investment is one in a business strategy, building a new warehouse, seeking fuel efficient methods of doing business, upgrading information technology systems, or investing in human resources, we should try to quantify the benefits and cost of these choices in order to evaluate them properly.
• D)To achieve success over time, a firm's managers must identify and invest in projects that provide positive net present values to maximize shareholder wealth.
• E)all of the above statements are correct

---

Definitions:

Value Losses

Decreases in the worth or market value of an asset over time.

Cash Gift-Giving

The practice of giving money as a present to friends or family members on special occasions or celebrations.

Noncash Gift-Giving

The act of giving gifts that do not involve direct monetary exchange, such as time or goods.

Recipient Preferences

The specific likes or choices of individuals or entities that are targeted to receive something.