Which of the Following Statements Is FALSE

question 22

Multiple Choice

Which of the following statements is FALSE?

• A)The ultimate goal in capital budgeting is to determine the effect of the decision to take a particular project on the firm's cash flows.
• B)To the extent that overhead costs are fixed and will be incurred in any case,they are incremental to the project and should be included in the capital budgeting analysis.
• C)Unlevered Net Income = (Revenue - Costs - Depreciation)× (1 - τ_c).
• D)Earnings are not cash flows.

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