Which of the following statements is false? A) The terminal of continuation value of the project represents the market value (as of the last forecast period) of the free cash flow from the project at all future dates. B) The incremental effect of a project on the firm's available cash is the project's free cash flow. C) (1 - τ_c) × Depreciation is called the depreciation tax shield. D) To evaluate a capital budgeting decision, we must determine its consequences for the firm's available cash.

Question

Quizplus · Accepted Answer

C) τ_c x Depreciation is called the depreciation tax shield.

Which of the Following Statements Is False