Which of the following statements is FALSE?

Group of answer choices

Income Tax $=$ EBIT $\backslash$times $(1-$ Corporate Tax Rate$).$

We begin the capital budgeting process by determining the incremental earnings of a project.

Managers sometimes continue to invest in a project that has a negative NPV because they have already invested a large amount in the project and feel that by not continuing it$,$ the prior investment will be wasted.

When sales of a new product displace sales of an existing product, the situation is often referred to as cannibalization.