Which of the following statements is false?

A. Net incomes are not cash flows. Financial Managers should focus on the cash flows when making capital budgeting decisions.

B. Incremental earnings are the amount by which the firm's earnings are expected to change as a result of the investment decision.

C. To the extend that overhead costs are fixed and will be incurred in any case, they are not incremental to the project and should be excluded in the capital budgeting analysis.

D. Depreciation is not a cash expense paid by the firm.

E. None of the above.