hods to Measure Performance Practice: Consider an asset with the following cash flows) 0 1 2 3 Cash flows millions -12 +5.20 +4.80 4.60 3312 The firm uses straight-line depreciation. Thus, for this project, it writes off $4 milli per year in years 1, 2, and 3. The discount rate is 10%. Show that economic depreciation equals book depreciation. Show that the book rate of return is the same in each year Show that the project's book profitability is its true profitability