Are the following statements correct?

Statement $1$: Depreciation is a non$-$cash expense; however, it is an important part of determining incremental cash flows because it reduces the interest expense paid by the firm.

Statement $2$: If we use the double$-$declining balance method of depreciation for tax purposes, the NPV of the project we are considering should be higher than if we use the straight$-$line method.

Are the following statements correct?

Statement $1$: Depreciation is a non$-$cash expense; however, it is an important part of determining incremental cash flows because it reduces the interest expense paid by the firm.

Statement $2$: If we use the double$-$declining balance method of depreciation for tax purposes, the NPV of the project we are considering should be higher than if we use the straight$-$line method.

Only one of the statements is correct.

Neither statement is correct

Both statements are correct.