MCQ

Which of the following statements is correct? A Tax allowable depreciation is a relevant cash flow when evaluating borrowing to buy compared to leasing as a financing choice B Asset replacement decisions require relevant cash flows to be discounted by the after-tax cost of debt C If capital is rationed, divisible investment projects can be ranked by the profitability index when determining the optimum investment schedule D Government restrictions on bank lending are associated with soft capital rationing Both A and C are correct right? A because tax implications are relevant and C is correct as well :/