Which of the following is true regarding MACRS depreciation?

I. The amount of depreciation expense in the first two years is higher when MACRS is used instead of straight line.

II. Net income for a project is lower in the first two years when MACRS is used instead of straight line.

III. Operating cash flows for a project are higher in the first two years when MACRS is used instead of straight line.

IV. NPV for a project is typically higher when MACRS is used instead of straight line.

Select one:

a. I only.

b. I, II, and III only.

c. I, II, III, and IV.

d. None of the above