For each statement in parts $($a$)$ to $($d$),$ give a short answer or indicate True or

False.

a$.$ Which of the following is a cash fl ow: $(1)$ depreciation, $(2)$ loan interest

paid, and$/$or $(3)$ income tax.

b$.$ We know that depreciation law has changed dramatically since $1950$;

however, tax law has not changed. $($T or F$)$

c$.$ Depreciation method affects taxes owed. $($T or F$)$

d$.$ In an alternative evaluation, the inclusion of taxes will change the amount

of the measures of merit $($e$.$g$.,$ PW or AW$),$ but will not change which

alternative is selected as most desirable. $($T or F$)$