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To: jim kelley who wrote (29719)	11/12/1999 4:03:00 PM
From: IQBAL LATIF	Respond to of 50167

Thanks Jim...<<The NPV calculation in the referenced article used "operating cash flow" instead of "free cash flow" and this is a not a correct use of the discounted cashflow valuation method as it ignores SUNW's substantial acquisition costs.>> Will you consider SUNW's substantial acquisition costs as an outlay? If "operating cash flow" is utilised to increase SUNW future potential as a result of substantial acquisition should that not be positive, company is utilising its cash flow resources internally at much higher traditional PEG rate of SUNW . May be for me it is positive..Just a thought and would like if I am wrong please correct..thanks