Which of the Following Statements Is FALSE

Multiple Choice

Which of the following statements is FALSE?

A) 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.
B) Many projects use a resource that the company already owns.
C) As a practical matter, to derive the forecasted cash flows of a project, financial managers often begin by forecasting earnings.
D) When evaluating a capital budgeting decision, we generally include interest expense.