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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Definitions:

Economies of Scale

Businesses achieve cost benefits as a result of their operational size, where the cost for each produced unit diminishes as the size of operation expands.

Functional Lines

Divisions within an organization that are categorized based on specific functions or roles, such as marketing, finance, or operations.

Employee Performance

An assessment of how effectively an employee performs their job duties and responsibilities.

Similar Skills

Refers to abilities or expertise that are closely comparable or match very closely between individuals or within various contexts.