Given a text T, and several options, according to the question posed in the text T to choose the most appropriate option from the options as the answer, please directly output the most appropriate option, do not need to output the explanation.

Geet Patel is a sell- side analyst who covers the pharmaceutical industry. One of the companies she follows, PRT-Assam Pharma, is evaluating a regional distribution center. The financial predictions for the capital project are as follows:● Fixed capital outlay is INR1.50 billion.● Investment in net working capital is INR0.40 billion.● Straight-line depreciation is over a six-year period with zero salvage value.● Project life is 12 years.● Additional annual revenues are INR0.10 billion.● Annual cash operating expenses are reduced by INR0.25 billion.● The capital equipment is sold for INR0.50 billion in 12 years.● Tax rate is 40 percent.● Required rate of return is 12 percent.Simpson is evaluating this investment to see whether it has the potential to affect Bayonne Pharma's stock price.Simpson estimates the NPV of the project to be INR0.41 billion, which should increase the value of the company.Simpson is evaluating the effects of other changes to her capital budgeting assumptions. She wants to know the effect of a switch from straight-line to accelerated depreciation on the company's operating income and the project's NPV. She also believes that the initial outlay might be much smaller than initially assumed. Specifically, she thinks the outlay for fixed capital might be INR0.24 billion lower, with no change in salvage value.When reviewing her work, Simpson's supervisor provides the following comments. “I note that you are relying heavily on the NPV approach to valuing the investment decision. I don't think you should use an IRR because of the multiple IRR problem that is likely to arise with the Bayonne Pharma project. However, the equivalent annual annuity would be a more appropriate measure to use for the project than the NPV. I suggest that you compute an EAA.”
A switch from straight-line to accelerated depreciation would:
Option A:increase the NPV and decrease the first year operating income after taxes.
Option B:increase the first year operating income after taxes and decrease the NPV.
Option C:increase both the NPV and first year operating income after taxes.

Answer: A