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:

Behavioral Component

An aspect of an attitude that reflects the intention to behave in a certain way toward someone or something.

Recycling

The process of converting waste materials into new products to prevent waste of potentially useful materials, reduce consumption of fresh raw materials, energy usage, and air and water pollution.

Cognitive Dissonance

The psychological discomfort experienced by an individual who holds two or more contradictory beliefs, ideas, or values at the same time.

Validity Effect

The phenomenon where repeated exposure to a statement increases the likelihood of accepting it as true.