In after tax cash flow analysis, we compute depreciation and income tax each year. In order to compute the after tax cash flow (ATCF) for that year, both of these items must be subtracted from the before tax cash flow (BTCF). Is this statement correct?

a.) YES

b.) NO

c.) Only if it helps to INCREASE the ATCF

d.) Only if it helps to REDUCE the ATCF