Which of the Following Correctly Adjusts for Depreciation When Calculating

Multiple Choice

Which of the following correctly adjusts for depreciation when calculating a project's operating cash flow?

A) (revenues − cash expenses) × (1 − tax rate) + (tax rate × depreciation) .
B) pretax profit + depreciation tax shield.
C) after-tax profit − depreciation.
D) ignore depreciation since it is not a cash flow.