when the asset is sold, but defers tax.

Conclusions

*Cash flows do not measure income. They measure only cash flows.
*Depreciation, depletion and amortization cannot be ignored as "non-cash expenses". They are valid allocations of a one-time cash flow over the time period that the asset helps generate revenues.
*In the process of normalizing rates of return between different investment opportunities, ROC should not be included in the consideration of 'income' or 'dividends'.

Time value of money

Some

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