Which of the Following Statements Is False

question 17

Multiple Choice

Which of the following statements is false?

• A) The ultimate goal in capital budgeting is to determine the effect of the decision to take a particular project on the firm's cash flows.
• B) To the extent that overhead costs are fixed and will be incurred in any case, they are incremental to the project and should be included in the capital budgeting analysis.
• C) Unlevered Net Income = (Revenue - Costs - Depreciation) × (1 - τ_c).
• D) Earnings are not cash flows.

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