Which of the Following Statements Is FALSE

question 10

Multiple Choice

Which of the following statements is FALSE?

• A) Sensitivity analysis allows us to explore the effects of errors in our estimated inputs in our net present value (NPV) analysis for the project.
• B) To compute the net present value (NPV) for a project, you need to estimate the incremental cash flows and choose a discount rate.
• C) Estimates of the cash flows and cost of capital are often subject to significant uncertainty.
• D) When we are certain regarding the input to a capital budgeting decision, it is often useful to determine the break-even level of that input.

---

Definitions:

Representative Clade

A group of organisms that consists of a common ancestor and all its lineal descendants, representing a single branch on the tree of life.

Supergroup

A high-level taxonomic rank in the classification of organisms, above kingdom, proposed to accommodate the phylogenetic relationships.

Forams

are short for foraminifera, a large group of amoeboid protists with calcareous shells, used in geological dating and paleoclimate estimation.

Representative Clade

A group of organisms that includes an ancestor and all of its descendants, representative of a larger evolutionary group.