Which of the Following Statements Is FALSE

question 51

Multiple Choice

Which of the following statements is FALSE?

• A)When evaluating a capital budgeting decision,the correct tax rate to use is the firm's average corporate tax rate.
• B)To determine the capital budget,firms analyze alternative projects and decide which ones to accept through a process called capital budgeting.
• C)A new product typically has lower sales initially,as customers gradually become aware of the product.
• D)Sunk costs have been or will be paid regardless of the decision whether or not to proceed with the project.

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Definitions:

Self-Reference Effect

The tendency to better remember information related to oneself compared to information that is not personal.

Candid

Candid describes a manner of being honest, straightforward, and sincere, often in a refreshing or liberating manner, without pretensions or hidden motives.

Evaluating the Self

The process of introspectively assessing one's own qualities, actions, and characteristics, often in comparison to others or standards.

Self-Enhancement

The tendency to seek, interpret, and remember information in a way that favorably increases one’s self-esteem or self-worth.