Multiple Choice
Use the table for the question(s) below.
-Which of the following statements is FALSE?
A) To compute the net present value (NPV) for a project, you need to estimate the incremental cash flows and choose a discount rate.
B) 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.
C) Estimates of the cash flows and cost of capital are often subject to significant uncertainty.
D) Sensitivity analysis allows us to explore the effects of errors in our estimated inputs in our net present value (NPV) analysis for the project.
Correct Answer:

Verified
Correct Answer:
Verified
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