1. What are the relevant incremental cash flows for project evaluation? 2. What are the seven pitfall related to incremental cash flows? 3. During the final year of a project, why is networking capital returned to the firm? 4. How is depreciation calculated for fixed assets under current tax law (what is it called)? 5. A piece of newly purchased industrial equipment costs $1,000,000 and is classified as a seven-year property under MACRS. Calculate the annual depreciation allowances and the end-of- the-year book values for this equipment (Hint: Use Table 10.7 in your text)