Which of the Following Statements Is False

question 11

Multiple Choice

Which of the following statements is false?

• A) The terminal of continuation value of the project represents the market value (as of the last forecast period) of the free cash flow from the project at all future dates.
• B) The incremental effect of a project on the firm's available cash is the project's free cash flow.
• C) (1 - τ_c) × Depreciation is called the depreciation tax shield.
• D) To evaluate a capital budgeting decision, we must determine its consequences for the firm's available cash.

---

Definitions:

Exposure Hierarchy

A list organized in an ascending order of fear-inducing stimuli or situations, used in exposure therapy to gradually desensitize individuals to their phobias or anxieties.

Anti-Anxiety Medication

Drugs prescribed to alleviate symptoms of anxiety by affecting neurotransmitter activity in the brain.

Imaginal Exposure

A therapeutic technique in which individuals are guided to vividly imagine and confront the stimuli or situations associated with their fears or traumas.

SUDS

An acronym for Subjective Units of Distress Scale, a tool to measure the severity of distress or anxiety an individual experiences.