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Chapter 7. Using Return on Assets to Mea... > 4 and 5. After-Tax Cash Flow (ATCF)
4 and 5. After-Tax Cash Flow (ATCF)
Given the revenue generated by the business (items 2 and 3), how much profit can be achieved? This is related to the type of business, economies of scale, capacity utilization, and operating efficiencies. It is greatly affected by the degree of vertical integration and value-added processes.
