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Which of the Following Statements Is FALSE

Question 5

Multiple Choice

Which of the following statements is FALSE?


A) A simple method often used to calculate depreciation is the straight-line method.
B) A sunk cost is any unrecoverable cost for which the firm is already liable.
C) Unlevered Net Income = EBIT × τc.
D) The decision to continue or abandon a project should be based only on the incremental costs and benefits of the project going forward.

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