Max Is Opening a Car Wash

Max is opening a car wash. The initial investment in the project will be $225,000 for the building and related equipment. When compiling the project's pro forma statements, Max should note that
The depreciation expense:

A) Has no effect on the operating cash flows.
B) Has no effect on the net income.
C) Increases the operating cash flows.
D) Increases the net income.
E) Has no effect on either the cash flows or the net income.