Which of the Following Statements Is False

question 90

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:

Performance Evaluation

An assessment process where an individual's or team's work outputs and efficiency are measured and reviewed against set goals or criteria.

Total Revenue

The total income generated by a company from its business activities, often from the sale of goods and services, before any expenses are subtracted.

Net Book Value

The value of an asset after accounting for depreciation and amortization, as recorded on a company's balance sheet.

Invested Capital

Funds invested by shareholders and debt holders in a company used for carrying out its operations and projects.