Use the Following Statements to Answer This Question

Use the following statements to answer this question:

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.Replacement projects are projects that involve the replacement of an existing project.The incremental cash flows are the difference between the costs and the revenues of the two projects.
II.The discount rate of the two projects must be the same.