Which of the Following Statements Is FALSE

question 66

Multiple Choice

Which of the following statements is FALSE?

• A)The simplest method used to calculate depreciation is the straight-line method.
• B)A sunk cost is any unrecoverable cost for which the firm is already liable.
• C)Unlevered Net Income = EBIT × τ_c.
• D)The decision to continue or abandon should be based only on the incremental costs and benefits of the project going forward.

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Definitions:

Social Interest

A concept in psychology referring to an individual's inclination towards empathy, community feeling, and considering the welfare of others as a guiding principle.

Common Welfare

A concept referring to the overall health, happiness, and well-being of a group or society.

Humanity

The collective qualities and conditions of human beings, including kindness, compassion, and understanding towards others.

Scientific Respectability

This term indicates the degree to which a field or method is regarded with esteem and credibility by the scientific community.