Which of the Following Statements Is FALSE

question 18

Multiple Choice

Which of the following statements is FALSE?

• A)Many projects use a resource that the company already owns.
• B)When evaluating a capital budgeting decision,we generally include interest expense.
• C)Only include as incremental expenses in your capital budgeting analysis the additional overhead expenses that arise because of the decision to take on the project.
• D)As a practical matter,to derive the forecasted cash flows of a project,financial managers often begin by forecasting earnings.

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Definitions:

Adams's Theory

Relates to the equity theory of motivation, suggesting that employees are motivated to maintain equity between inputs and outcomes in their job and workplace.

Expectancy Theory

A theory of motivation suggesting that individuals are motivated to act based on the expected outcome of their actions and the value they place on those outcomes.

Motivational Problems

Issues or barriers that negatively affect an individual's enthusiasm, energy, or willingness to continue with a task.

Instrumentality

The belief that performance is related to rewards.