1. How do we determine if cash flows are relevant to the capital budgeting decision? 2. A $1,000,000 investment is depreciated using a seven-year MACRS class life. It requires 150,000 in additional inventory and will increase accounts payable by $50,000. It wil generate $400,000 in revenue and $150,000 in cash expenses annually, and the tax rate is 21%. The required rate of return has been estimated at 13.0% Prepare a Project Cash Flow Projection and determine if the investment should be approved. In order to save you some time...here is the depreciation using MACRS for this investment MACRS % Deprediation 14.29% 24.49% 17.49% 12.49% 8.93% 8.93% 8.93% 4.45% 000,000 142,900 244,900 174,900 124,900 89,300 89,300 89,300 44,500