Which of the Following Statements Is FALSE

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 NPV analysis for the project.
B) To compute the 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.