7 Marks: 1 Which of the following statements is CORRECT? Choose one answer. a. Using MACRS depreciation rather than straight line would normally have no effect on a project's total projected cash flows but it would affect the timing of the cash flows and thus the NPV. b. Under current laws and regulations, corporations must use straight-line depreciation for all assets whose lives are 5 years or longer. c. Corporations must use the same depreciation method (e.g., straight line or MACRS) for stockholder reporting and tax purposes. d. Since depreciation is not a cash expense, it has no affect on cash flows and thus no affect on capital budgeting decisions. e. Under MACRS depreciation rules, higher depreciation charges occur in the early years, and this reduces the early cash flows and thus lowers a project's projected NPV