Which of the following statements is incorrect?

Multiple Choice

The cash flow available for distribution to debt and equity investors after the firms pays new capital investments is also known as the firm's free cash flow.

To estimate the operating cash flow $($OCF$),$ depreciation should be added back to EBIT $($because it is a non$-$cash expense$)$ and taxes should be deducted.

The higher the depreciation expense, the lower the tax liability, other things held constant.

Stock repurchases create a positive cash flow in the Cash Flow to Stockholders computation.

Operating cash flow includes capital sanding and working capital requirements.