The Miller Company purchased a new headquarters building on January 1 at a comme cost of \($40\) million. The building is expected to last 20 years, at which time its residual value is expected to be \($5\) million.

Required

Calculate the depreciation expense for each of the first three years on the new headquarters building using each of the following methods:

1. Straight-line 

2. Double-declining-balance 

Does the selection of a depreciation method affect a company’s cash flow from operations? In what ways?