Depreciation Does not affect cash flows Does not affect profits Is not a cash outflow Is a cash inflow Little Giant is building a manufacturing plant that will require a cash outlay of $300,000 for the initial purchase of a building, $450,000 for remodeling the first year, and $710,000 for new equipment in the second year. If the firm's cost of capital is 12 percent, what is the present value of the net investment at time 0? $1,460,000 $1,132,070 $1,267,720 $300,000