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.

Mei Yang is head of analyst recruiting for PPA Securities. She has been very frustrated by the number of job applicants who, in spite of their stellar pedigrees, seem to have little understanding of basic financial concepts. Yang has written a set of conceptual questions and simple problems for the human resources department to use to screen for the better candidates in the applicant pool. A few of her corporate finance questions and problems follow.Concept 1“A company invests in depreciable assets, financed partly by issuing fixed rate bonds. If inflation is lower than expected, the value of the real tax savings from depreciation and the value of the real after-tax interest expense are both reduced.”Concept 2“Sensitivity analysis and scenario analysis are useful tools for estimating the impact on a project’s NPV of changing the value of one capital budgeting input variable at a time.”Concept 3“When comparing two mutually exclusive projects with unequal lives, the IRR is a good approach for choosing the better project because it does not require equal lives.”Concept 4“Project specific betas should be used instead of company betas whenever the risk of the project differs from that of the company.”Problem“Bo Gansu Electronics Co., Ltd. is investing CNY100 in a project that is being depreciated straight line to zero over a two- year life with no salvage value. The project will generate earnings before interest and taxes of CNY50 each year for two years. Bo Gansu Company’s weighted average cost of capital and required rate of return for the project are both 12%, and its tax rate is 30%.”
For Concept 1, the statement is correct regarding the effects on:
Option A:the real tax savings from depreciation, but incorrect regarding the real after-tax interest expense.
Option B:both the real tax savings from depreciation and the real after-tax interest expense.
Option C:neither the real tax savings from depreciation nor the real after-tax interest expense.

Answer: C