a) Loius Laine is considering replacing its aging telephone system with state of the art voice activated system. The new system is expected to save the company 2,000 per month by eliminating the current operator's salary. With a cost of 100,000 and a ten-year life, the system will be drepreciated at a rate of 10,000 per year.

Required

The 10,000 in depreciation will be included in the project's cash flow analysis? Answer 1Choose...TrueFalse

b)Triple M is exploring the purchase of a new piece of equipement. If the equipment is purchased, the company will incur an additional 12,000 in annual depreciation expense for the next ten years.

Required

In determining the cash flows associated with the new equipment, the additional depreciation will be Answer 2Choose...concsidered a cash outflow in the year of occurrenceconsidered a cash inflow in the year of occurrenceconsidered a cash inflow at the time the new equipment is purchasedignored in the cash outflow analysis