Question 8 (2 points) Listen Depreciation charges are considered an element of cash flows, and are thus relevant. are relevant because they relate to capital items. affect the ending balance of operating income, and are thus relevant. are not relevant in capital budgeting decisions, because they are not discounted. are not relevant because they are not cash flows. Question 9 (2 points) 1) Listen Which of the following statements is TRUE? The depreciation method used does not affect cash inflows from operations. The total CCA available over the life of the asset depends on the method of depreciation used. The CCA claimed does not affect cash outflows. Since CCA does not involve a cash expenditure, it can be ignored in capital- budgeting decisions. The accounting book value for all assets in a class equals the UCC for that class. Question 10 (2 points) Listen The Zeron Corporation wants to purchase a new machine for its factory operations at a cost of $950,000. The investment is expected to generate $350,000 in annual cash flows for a period of four years. The required rate of return is 14%. The old machine can be sold for $50,000. The machine is expected to have zero value at the end of the four-year period. Income taxes are not considered. What is the net present value of the investment? $119,799 $500,000 $1,019,550 $69,799 $326,750