Which of the Following Are Correct Methods of Computing the Operating

Multiple Choice

Which of the following are correct methods of computing the operating cash flow of a project assuming that the interest expense is equal to zero? I.EBIT + Depreciation − Taxes
II) EBIT − Depreciation + Taxes
III) Net Income − Depreciation
IV) [(Sales − Costs) × (1 − Tax rate) ] + [Depreciation × Tax rate]

A) I and III only
B) II and IV only
C) II and III only
D) I and IV only
E) I,III,and IV only