Which of the following statements regarding capital, Ask an Expert

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Which of the following statements regarding capital budgeting decisions is incorrect?

a. Capital budgeting analysis techniques are applicable to equipment replacement decisions.

b. The amount and timing of cash flows is critical to the calculation of the net present value of an investment.

c. The cost of capital is equal to a company's maximum desired rate of return.

d. In a capital budgeting decision, the amount of the initial investment required is critical to the analysis; it is not treated as a sunk cost.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92320724

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