Which of the Following Statements Is FALSE

Multiple Choice

Which of the following statements is FALSE?

A) Depreciation expenses have a positive impact on free cash flow.
B) Free Cash Flow = (Revenues - Costs - Depreciation) × (1 - τ_c) - Capital Expenditures - ΔNWC + τ_c × Depreciation.
C) The firm cannot use its earnings to buy goods,pay employees,fund new investments,or pay dividends to shareholders.
D) The depreciation tax shield is the tax savings that results from the ability to deduct depreciation.