Which of the following statements is true?

Discounted cash flow techniques automatically take into account recovery of the initial investment.

When discounted cash flow methods of capital budgeting are used, the working capital required for a project is ordinarily counted as a cash outflow at the beginning of the project and as a cash inflow at the end of the project.

Multiple Choice

Only statement Ione is true.

Only statement II is true.

Both statements are true.

Neither statement is true.