QUESTION 6 Which of the following statements is TRUE regarding the use of depreciation? Given a fixed amount of depreciation expense, a company will usually prefer to have more of the depreciation expense in the early years and less deprecation expense in fater years of a project. Depreciation represents an actual cash outflow for the company. Because depreciation is a non-cash expense, we can ignore it when calculating incremental cash flows. Depreciation sa sunk cost so we should ignore it when calculating incremental cash flows. Depreciation primarily affects the projected revenue that a project will generate