Which of the following statements is true?

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

II$.$ 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 I is true.

Only statement II is true.

Both statements are true.

Neither statement is true.