Which of the Following Is Correct

question 15

Multiple Choice

Which of the following is correct?

• A) The costs associated with feasibility studies should not be included in an investment appraisal
• B) The cash flows from fixed overheads are usually excluded from an investment appraisal
• C) HM Revenue and Customs allows profits to be reduced for tax purposes through capital allowances for depreciation
• D) All of the above statements are correct

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Definitions:

Availability Bias

A cognitive bias that causes people to overestimate the probability of events associated with memorable or vivid occurrences.

Adjustment Bias

A cognitive bias influencing how individuals respond or adapt to new or changing information, often hindering accurate decision-making.

Lack-of-participation Error

Lack-of-participation error occurs when decision-making or evaluation processes are hindered due to the absence or minimal involvement of key individuals.

Confirmation Error

A cognitive bias where individuals give more weight to evidence that confirms their existing beliefs, disregarding evidence that contradicts them.