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.