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To: Stock Farmer who wrote (47786)	10/11/2001 12:42:08 PM
From: Seeker of Truth	Read Replies (2) \| Respond to of 54805

Thanks for your reply, John. But there's still a quandary. If the whole price of the spiffy box etc. is written off immediately then you and your son lost $42 that week. But wait a minute, the spiffy box is still there, it's still painted. How about depreciating it? You could deduct 10% a week. Then you've made $3 in that second week. After 10 weeks maybe you'd need a new box if pizazz is all that sells lemonade. Compare that with trudging along at $1 a week profit. Evidently just conserving cash isn't the best way. Suppose we have two manufacturing companies. One spends not a nickel on capex. The production facilities simply deteriorate. The other spends. If they started out equal then for a while the first company would have the better economic profit, using your metric. But eventually ???? Sorry to bother you with this elementary question.