... Obviously, if sales or costs are different from theassumed levels, then profits and cash flows, hence NPV and IRR, will differ from their projected levels. Later in the chapter, we discuss how changes in ... both deprecia-tion and cash flow from asset sales later in the chapter. Noncash ChargesIn calculating net income, accountants usually subtract depreciation from revenues. So, while accountants ... an alternate straight-linemethod.1As we saw earlier in the chapter, higher depreciation expenses result in lowertaxes, hence higher cash flows. Therefore, since a firm has the choice of usingthe...