Use the Table for the Question(s)below

question 48

Multiple Choice

Use the table for the question(s) below.
-Which of the following statements is FALSE?

• A)When evaluating a capital budgeting project, financial managers should make the decision that maximises net present value (NP
• V).
• B)Sensitivity analysis reveals which aspects of the project are most critical when we are actually managing the project.
• C)The break-even level of an input is the level for which the investment has an internal rate of return (IR
• R)of zero.
• D)The most difficult part of capital budgeting is deciding how to estimate the cash flows and the cost of capital.

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