Which of the Following Statements Is FALSE

question 93

Multiple Choice

Which of the following statements is FALSE?

• A) The terminal of continuation value of the project represents the market value (as of the last forecast period) of the free cash flow from the project at all future dates.
• B) The incremental effect of a project on the firm's available cash is the project's free cash flow.
• C) (1 - τ_c) × Depreciation is called the depreciation tax shield.
• D) To evaluate a capital budgeting decision, we must determine its consequences for the firm's available cash.

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Definitions:

Market Performance

A measure of the outcomes and results achieved by a company or product in a market context, often evaluated through sales, market share, or growth rates.

Supply Chain

The system of entities, individuals, processes, data, and assets engaged in transferring a product or service from the producer to the consumer.

Logistics

The coordination and management of moving goods from their point of origin to their final destination.

Marketing Mix

The combination of factors that can be controlled by a company to influence consumers to purchase its products, often summarized as product, price, place, and promotion.