"One of the nice things about using discounted cash flow methods for evaluating capital budgeting projects is not having to worry about such irrelevant items as depreciation and taxes. The only relevant variable is the interest rate/' says Joe. "You're wrong," replies Frank. "Depreciation and taxes are just as relevant with discounted cash flow methods as with any other method. If you ignore them, you get answers that are meaningless." Respond to these comments.