With respect to capital budgeting expected cash flows, which of the following statements is false?

1) If operating cash flows are positive, increasing the corporate tax rate increases the value of the depreciation tax shield.

2) All else equal, if an asset is sold before it is fully depreciated, faster depreciation decreases the after-tax salvage value.

3) All else equal, an increase in accounts receivable increases the cash flows associated with net working capital.

4) All else equal, an increase in inventory decreases the cash flows associated with net working capital.

5) Depreciation is not a direct capital budgeting cash flow.