Which of the following statements is? FALSE?

1. With straight?linedepreciation the? asset's cost is divided equally over its life.

2. Managers sometimes continue to invest in a project that has a negative NPV because they have already invested a large amount in the project and feel that by not continuing? it, the prior investment will wasted.

3. A projects unlevered net income is equal to its incremental revenues less costs and? depreciation, evaluated on an pre?tax basis.

4. Sales will ultimately decline as the product nears obsolescence or faces increased competition.