Answer questions (A) through (D), which concern the role of depreciation in capital budgeting analysis.
(A) Does depreciation affect cash flow in a positive or negative manner?
(B) From a net present value perspective, why is accelerated depreciation preferable?
(C) Is it acceptable to utilize one depreciation method for tax purposes and another for financial reporting purposes?
(D) Which depreciation method is relevant for determining project cash flows?