Which of the following statements is FALSE? 1)

A) As a practical matter, to derive the forecasted cash flows of a project, financial managers

often begin by forecasting earnings.

B) Many projects use a resource that the company already owns.

C) When evaluating a capital budgeting decision, we generally include interest expense.

D) 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.