Which of the Following Statements Is False

question 75

Multiple Choice

Which of the following statements is false?

• A) The break-even level of an input is the level for which the investment has an IRR of zero.
• B) The most difficult part of capital budgeting is deciding how to estimate the cash flows and the cost of capital.
• C) When evaluating a capital budgeting project, financial managers should make the decision that maximizes NPV.
• D) Sensitivity analysis reveals which aspects of the project are most critical when we are actually managing the project.

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Definitions:

Job Specialization

The process of focusing one's work and skill development on a specific area of expertise to increase efficiency and productivity.

Task Significance

The degree to which a job has a substantial impact on the lives or work of other people, within or outside the organization.

Independence

The state of having the self-autonomy and freedom to make decisions without undue influence from others.

Discretion

The freedom to decide what should be done in a particular situation.