Which of the Following Statements Is FALSE

question 50

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 other business activities of the firm.
• 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.

---

Definitions:

Hallucinates

The experience of sensing things that are not present in the external environment as if they are real, often a symptom in psychological disorders.

Sleep Attacks

Sudden and irresistible episodes of sleep occurring in disorders such as narcolepsy, characterized by excessive daytime sleepiness.

Animal Magnetism

A historical term referring to a supposed invisible natural force possessed by all living things, including humans, thought to affect health and disease.

Franz Mesmer

An 18th-century physician best known for developing what he called "animal magnetism" and what later became known as mesmerism, a precursor to hypnotism.