Which of the following statements is/are FALSE? I) When evaluating a capital budgeting decision, we generally include interest expense. II) 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. III) As a practical matter, to derive the forecasted cash flows of a project, financial managers often begin by forecasting earnings.

option I: When evaluating a capital budgeting decision, we generally include interest expense.

Explanation:

Capital budgeting can simply be defined as the process by which a  company evaluates prospective expenditures or investments that will be of a lucrative deal to the company. they are any project undergo by firms or companies that will bring  a great deal of money and value to the company.

capital budgeting decisions usually are of different kinds as it  ranges from mutually exclusive projects,accept-reject decision  or acceptance rule and the  capital rationing decision

capital budgeting covers the process of investing money for the company with the view that or of generating positive returns and does not include interest expense.

the answer is     d. in our global economy, most job growth will be in services, but manufacturing jobs will exist, too.

of the three mortgage options that demarco and tanya have to choose from, the balloon payment mortgage would be their best option, over adjustable payment and fixed payment plans.ultimately, the balloon payment plan would save demarco and tanya overall, in interest, would cost less monthly, and they would only have to make these payments for 8 years, opposing to 30 years for adjustable or fixed payment plans. 

overall, demarco and tanya would save $80,811 if they chose balloon payments over fixed payments, and would save $116,711 if they choose balloon payments over adjustable payments. benefits with choosing fixed payments over adjustable payments is that, in the end, the payments will still be $836.30 a month, while with adjustable payments, the initial monthly payments will be $763.38 to $1082.70 a month, ultimately leading to a more costly purchase. benefits with choosing fixed payments over balloon payments are not present. benefits in choosing adjustable payments over is that it has a lower interest rate, and starts with lower monthly payments initially. benefits in choosing adjustable payments over balloon payments include a lower interest rate, and lower initial monthly payments. benefits in choosing balloon payments over fixed payments include lower interest rates, lower overall price, lower monthly payments, takes less time to pay off, and does not require a downpayment. benefits in choosing balloon payments over adjustable payments include, lower monthly payments (when averaged), takes less time to pay off, and lower overall price.

hence, option c, balloon payments, is the best option for demarco and tanya to make this purchase, for it will save them a minimum of $80811, and a maximum of $116,711.