Which One of the Following Statements Is Correct

Multiple Choice

Which one of the following statements is correct?

A) Project analysis should only include the cash flows that affect the income statement.
B) A project can create a positive operating cash flow without affecting sales.
C) The depreciation tax shield creates a cash outflow for a project.
D) Interest expense should always be included as a cash outflow when analyzing a project.
E) The opportunity cost of a company-owned building that is going to be used in a new project should be included as a cash inflow to the project.