Which of the Following Statements Is FALSE

question 108

Multiple Choice

Which of the following statements is FALSE?

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

---

Definitions:

E-contract

A contract that is created, signed, and maintained in electronic form, often over the internet.

Offer's Terms

Specific conditions and details outlined in a proposal or bid which must be accepted in full for an agreement to be formed.

Shakespearean Comedy

A genre of plays written by William Shakespeare that are characterized by humorous themes, happy endings, and often involve misunderstandings or complex plots.

Effective Offer

A proposal in contract law that is specific, communicates intent to be bound by acceptance, and has terms that are clear and capable of acceptance.