Which of the following statements is CORRECT? The faster an asset is depreciated, the lower the projected NPY from investing in the asset. Using accelerated depreciation rather than straight-line normally has no effect on a project's total projected cash flows nor would it affect the timing of those cash flows or the resulting NPV of the project. O Corporations must use the same depreciation method for both stockholder reporting and tax purposes. Using accelerated depreciation rather than straight line normally has the effect of speeding up cash flows and thus increasing a project's forecasted NPV. Depreciation is a non-cash item so completely frrelevant for capital budgeting QUESTION 42 Which of the following statements is CORRECT? Assume that the project being considered has normal cash flows, with one outflow followed by a series of inflows. A project's regular IRR is found by discounting the cash inflows at the cost of capital to find the present value (PV), then compounding this PV to find the IRR. If a project's IRR is greater than the WACC, then its NPV must be positive. To find a project's IRR, we must solve for the discount rate that causes the FV of the inflows to equal the PV of the project's costs. O To find a project's IRR, we must find a discount rate that is equal to the cost of capital A project's regular IRR is found by compounding the cash inflows at the cost of capital to find the terminal value (TV), then discounting this TV at the cost of capital