Which of the following statements is FALSE?
A)Many projects use a resource that the company already owns.
B)When evaluating a capital budgeting decision,we generally include interest expense.
C)Only include as incremental expenses in your capital budgeting analysis the additional overhead expenses that arise because of the decision to take on the project.
D)As a practical matter,to derive the forecasted cash flows of a project,financial managers often begin by forecasting earnings.

Question

Quizplus · Accepted Answer

Interest expense is not included in capital budgeting decisions because it is accounted for in the discount rate used to evaluate the project's cash flows.

Which of the Following Statements Is FALSE