Which of the Following Statements Concerning Depreciation and Capital Budgeting

Which of the following statements concerning depreciation and capital budgeting is true?

A) Depreciation can reduce cash outflows through savings in income tax.
B) The tax effects of depreciation are mostly irrelevant as capital budgeting analysis is generally done with before tax information.
C) Some depreciation charges can affect cash flows both directly and through effects on income tax.
D) Because depreciation is a non-cash item,it can never affect cash flows.