Because CCA Is a Non-Cash Expense,in Estimating the Annual After-Tax

Because CCA is a non-cash expense,in estimating the annual after-tax cash flows,we have to deal with it using one of the following two approaches:

A) I and II are correct.
B) I and II are incorrect.
C) I is correct, II is incorrect.
D) I is incorrect, II is correct.
I.Deduct CCA from operating income,then deduct the associated taxes payable,and finally add the amount of the CCA tax savings back.
II.Multiply the CCA by the company's effective tax rate and add this amount to the after-tax operating income.