Consider the Following Statements About Taxes and After-Tax Cash Flows

Multiple Choice

Consider the following statements about taxes and after-tax cash flows:
I. Capital budgeting analyses should incorporate after-tax cash flows rather than before-tax cash flows.
II. Added company revenues will result in lower taxes for a firm.
III. Operating expenses may actually provide a tax benefit for an organization.
Which of the above statements is (are) correct?

A) I only.
B) II only.
C) III only.
D) I and II.
E) I and III.