Which of the following statements is false? A) The ultimate goal in capital budgeting is to determine the effect of the decision to take a particular project on the firm's cash flows. B) To the extent that overhead costs are fixed and will be incurred in any case, they are incremental to the project and should be included in the capital budgeting analysis. C) Unlevered Net Income = (Revenue - Costs - Depreciation) × (1 - τ_c). D) Earnings are not cash flows.

Question

Quizplus · Accepted Answer

B) To the extent that overhead costs are fixed and will be incurred in any case, they are not incremental to the project and should not be included in the capital budgeting analysis.

Which of the Following Statements Is False