7-2 Topics Covered dIscounted Cash flows. Net Profits INcremental Cash flows s Treatment of Inflation SEparation of Investment Financing Decisions EXample: Blooper Industries Irwin/McGraw-Hill CThe McGraw-Hill Commpanies, Inc, 2001©The McGraw-Hill Companies, Inc.,2001 7- 2 Irwin/McGraw-Hill Topics Covered Discounted Cash Flows, NetProfits Incremental Cash Flows Treatment of Inflation Separation of Investment & Financing Decisions Example: Blooper Industries