Which of the Following Statements Is FALSE

question 21

Multiple Choice

Which of the following statements is FALSE?

• A)The firm deducts a fraction of the investments in plant,property,and equipment each year as depreciation.
• B)If securities are fairly priced,the net present value of a fixed set of cash flows is independent of how those cash flows are financed.
• C)Sunk cost fallacy is a term used to describe the tendency of people to ignore sunk costs in capital budgeting analysis.
• D)A good rule to remember is that if our decision does not affect a cash flow then the cash flow should not affect our decision.

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Definitions:

Prejudice

A preconceived opinion or bias towards something or someone, often not based on reason or actual experience.

Discrimination

Unjust or prejudicial treatment of different categories of people, especially on the grounds of race, age, or sex.

Immigrants

Individuals who move from their country of origin to live permanently in another country.

Visible Minorities

Refers to persons, other than Indigenous peoples, who are non-Caucasian in race or non-white in color, and a designated group in some countries for affirmative action policies.