Which of the following statements is CORRECT?

a. Since depreciation is not a cash expense, it has no effect on cash flows and thus no effect on capital budgeting decisions.

b. Under current laws and regulations, corporations must use straight-line depreciation for all assets whose lives are 5 years or longer.

c. Using bonus depreciation rather than straight line depreciation would normally have no effect on a project's total projected cash flows, but it would affect the timing of the cash flows and thus the NPV.

d. Corporations must use the same depreciation method (e.g., straight line or accelerated) for stockholder reporting and tax purposes.

e. Under bonus depreciation, higher depreciation charges occur at t = 0, and this increases the initial investment outlay and thus lowers a project's projected NPV.