(3) Which of the following statements on capital budgeting is FALSE? A) B) If a project is housed in a facility owned by the firm, then the cost of the facility can be ignored in the capital budgeting analysis. Since depreciation is a non-cash expense, it needs to be added back to EBIT to compute cash flows. A reason for calculating EBIT in a capital budgeting analysis is to compute the tax outflow caused by the project. Most of the projects require a net working capital investment to ensure that they can be smoothly executed. C) D)