Which of the following statements about capital budgeting cash flows is false?

a. Sunk costs are not incremental flows and hence should not be included in capital budgeting analysis.

b. Net working capital changes affect both the initial investment and the terminal or end of project cash flow.

c. If the salvage value is greaterthan the book value at the end of the project, then the salvage value tax is a cash inflow.

d. Operating cash flow in each year equal net income plus depreciation.

e. Under current tax laws, depreciation is taken over n+1 years where n=MACRS class life.