Which of the following statements is FALSE?
A) Depreciation is a method used for accounting and tax purposes to allocate the original purchase cost of the asset over its life.
B) Sometimes the firm explicitly forecast free cash flow over a shorter horizon than the full horizon of the project or investment.
C) Earnings include the cost of capital investments, but do not include non-cash charges, such as depreciation.
D) Firms often report a different depreciation expense for accounting and for tax purposes.
C
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