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:

Distinctiveness

The quality of being easily distinguishable or unique from others, often used to describe characteristics that set individuals, groups, or objects apart.

Disposition

The inherent qualities of mind and character that influence an individual's behavior and attitudes.

Behaviour

The actions or reactions of an individual or group in response to external or internal stimuli.

Low Distinctiveness

A characteristic or situation that does not strongly stand out from others or is not easily differentiated.