Discuss the impact of depreciation expense has on the cash flow analysis of a capital project.

Depreciation expense is used to lower the carrying value of an asset ad it is a scheduled

estimated expense.
Companies may choose to finance the acquisition of an asset in many ways ,it may be  by
installmental payment ,loans or issuing a debit. The investing cash flow section of the cash flow
statement is where the actual cash paid for such asset is recorded.
The effect seen initially is in th investing cash flow because cash must be paid to acquire the
asset before depreciation can start at al.However this is just an asset transfer from cash to a fixed
asset.
Depreciation expense reduce taxes because it is recorded as an expense deduction,this will
indirectly increase net income. The increase in net income means there will be higher amount of
cash on the cash flow statement because depreciation is added back into the operating cash flow.

Also discuss the implications of a leasing arrangement has on depreciation expense.

Lease can be classified as either capital lease or operating lease based on some criteria.A lease is
classified as capital lease if it fulfills any of the following:
The company gains ownership of the leased item after the end of the lease term.
If the company can buy out the leased item after the lease term is over at a lower price than its
value.
If the lease term covers at least 75% or longer than the useful lifespan of the leased asset.
The lease payment is 90% or higher than the fair market value of the leased asset.
A capital lease is treated  like a purchase and the lease obligations appears on the balance sheet
as a liability. The payments to fulfill the obligations is treated like a  a financed cost.This means
that the payment is divided into the principal and interest,while the principal goes into the
income statement as depreciation expense,the interest is recorded as interest expense.
Hence the depreciation expense does not include the interest.

References 
Parker, J. (2018, July 28). Investopedia. Retrieved from
https://www.investopedia.com/ask/answers/080216/how-does-depreciation-affect-cash-flow.asp
Cam Merritt “what are the effects of a lease on income statement?”
https://smallbusiness.chron.com/effects-lease-income-statement-71854.html