Regarding the Net Present Value of a Replacement Decision, Which

Regarding the net present value of a replacement decision, which of the following statements is false?

A) The present value of the after tax cost reduction benefits resulting from the new investment is treated as an inflow.
B) The after-tax market value of the old equipment is treated as an inflow at t = 0.
C) The present value of depreciation expenses on the new equipment, multiplied by the tax rate, is treated as an inflow.
D) Any loss on the sale of the old equipment is multiplied by the tax rate and is treated as an outflow at t = 0.
E) An increase in net operating working capital is treated as an outflow when the project begins and as an inflow when the project ends.