Methods to Measure Performance Practice: Consider an asset with the following cash flows: Tear 2 3 Cachows on -12 +5.20 The firm uses depreciation. Thus, for this project, it writes off $4 million per year in years 1, 2, and 3. The discount rate is 10%. SIA 331 Show that economic depreciation equals book depreciation. . Show that the book rate of return is the same in each year Show that the project's book profitability is its true profitability. Methods to Measure Performance Practice: Consider an asset with the following cash flows: Tear 2 3 Cachows on -12 +5.20 The firm uses depreciation. Thus, for this project, it writes off $4 million per year in years 1, 2, and 3. The discount rate is 10%. SIA 331 Show that economic depreciation equals book depreciation. . Show that the book rate of return is the same in each year Show that the project's book profitability is its true profitability