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11. Which of the following statements is​ FALSE? A. A new product typically has lower sales​...

11. Which of the following statements is​ FALSE? A. A new product typically has lower sales​ initially, as customers gradually become aware of the product. B. When evaluating a capital budgeting​ decision, the correct tax rate to use is the​ firm's average corporate tax rate. C. Sunk costs have been or will be paid regardless of the decision whether or not to proceed with the project. D. To determine the capital​ budget, firms analyze alternative projects and decide which ones to accept through a process called capital budgeting.

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Answer #1

B.When evaluating a capital budgeting​ decision, the correct tax rate to use is the​ firm's average corporate tax rate.

The correct tax rate would be the marginal tax rate and not the average corporate tax rate.

Rest of the options are true.

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