Which of the following statements is FALSE?

A$.$ Unlevered Net Income Revenue $-$ Costs $-$ Depreciation

Which of the following statements is FALSE? Unlevered Net Income = (Revenue Costs Depreciation) x (1 tc). To the extent that overhead costs are fixed and will be incurred in any case, they are incremental to the project and should be included in the capital budgeting analysis. The ultimate goal in capital budgeting is to determine the effect on the firm's cash flows of the decision to take a particular project.. Earnings are not cash flows.