Which of the Following Statements Is False

question 44

Multiple Choice

Which of the following statements is false?

• A) Sales will ultimately decline as the product nears obsolescence or faces increased competition.
• B) Managers sometimes continue to invest in a project that has a negative NPV because they have already invested a large amount in the project and feel that by not continuing it, the prior investment will be wasted.
• C) With straight-line depreciation the asset's cost is divided equally over its life.
• D) A project's unlevered net income is equal to its incremental revenues less costs and depreciation, evaluated on a pre-tax basis.

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Definitions:

Metaphors

Figurative language used to represent ideas or concepts in a way that is imaginative or symbolic, rather than literal.

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