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Use the Table for the Question(s)below

Question 48

Multiple Choice

Use the table for the question(s) below. Use the table for the question(s) below.   -Which of the following statements is FALSE? A) When evaluating a capital budgeting project, financial managers should make the decision that maximises net present value (NPV) . B) Sensitivity analysis reveals which aspects of the project are most critical when we are actually managing the project. C) The break-even level of an input is the level for which the investment has an internal rate of return (IRR) of zero. D) The most difficult part of capital budgeting is deciding how to estimate the cash flows and the cost of capital.
-Which of the following statements is FALSE?


A) When evaluating a capital budgeting project, financial managers should make the decision that maximises net present value (NPV) .
B) Sensitivity analysis reveals which aspects of the project are most critical when we are actually managing the project.
C) The break-even level of an input is the level for which the investment has an internal rate of return (IRR) of zero.
D) The most difficult part of capital budgeting is deciding how to estimate the cash flows and the cost of capital.

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