Which of the Following Statements Is False

question 33

Multiple Choice

Which of the following statements is false?

• A) The firm deducts a fraction of the investments in plant, property, and equipment each year as depreciation.
• B) If securities are fairly priced, the net present value of a fixed set of cash flows is independent of how those cash flows are financed.
• C) Sunk cost fallacy is a term used to describe the tendency of people to ignore sunk costs in capital budgeting analysis.
• D) A good rule to remember is that if our decision does not affect a cash flow then the cash flow should not affect our decision.

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Definitions:

Rough-And-Tumble

A form of play that involves physical activities such as running, tumbling, and play fighting, important for social and physical development.

Verbal Ability

A measure of one's capacity to use language effectively, including understanding, using, and interpreting words.

Visual-Spatial Ability

The capacity to understand, reason, and remember the spatial relations among objects or space, important in solving problems and navigating the world.

Middle Childhood

A developmental stage that typically includes children from about six to twelve years of age, characterized by significant growth in social, cognitive, and physical domains.