Other Issues

There are some other things to watch out for. First, we are only interested in measuring cash flow. Moreover, we are interested in measuring it when it actually occurs, not when it accrues in an accounting sense. Second, we are always interested in aftertax cash flow because taxes are definitely a cash outflow. In fact, whenever we write "incremental cash flows," we mean aftertax incremental cash flows. Remember, however, that aftertax cash flow and accounting profit, or net income, are entirely different things.

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