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Memphic Memphic
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6 years ago
Which of the following statements is FALSE?
A) The firm deducts a fraction of the investments in plant, property, and equipment each year as depreciation.
B) If securities are fairly priced, the net present value of a fixed set of cash flows is independent of how those cash flows are financed.
C) Sunk cost fallacy is a term used to describe the tendency of people to ignore sunk costs in capital budgeting analysis.
D) A good rule to remember is that if our decision does not affect a cash flow then the cash flow should not affect our decision.
Textbook 
Corporate Finance: The Core

Corporate Finance: The Core


Edition: 4th
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anicidanicid
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6 years ago
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