Which of the Following Statements Is FALSE

question 80

Multiple Choice

Which of the following statements is FALSE?

• A)Sales will ultimately decline as the product nears obsolescence or faces increased competition.
• B)Managers sometimes continue to invest in a project that has a negative NPV because they have already invested a large amount in the project and feel that by not continuing it,the prior investment will wasted.
• C)With straight-line depreciation the asset's cost is divided equally over its life.
• D)A projects unlevered net income is equal to its incremental revenues less costs and depreciation,evaluated on an pre-tax basis.

---

Definitions:

Less Conscientious

relates to individuals who tend to be less careful, diligent, and organized in their personal or professional life.

Signalling Theory

Job applicants interpret their recruitment and selection experiences as cues or signals about unknown characteristics of a job and an organization and what it will be like to work in an organization.

Harshness

The quality of being extremely strict or severe in conditions or treatment.

Perceptual Biases

Cognitive biases that result from the simplification of processing social realities, often leading to distorted interpretations.