Assume a project that will provide an increase of $2 million in cash flow because of favorable tax

A1.
Quick, the president of a New York Stock Exchange-listed firm, is very
short term oriented and interested in the immediate consequences of his
decisions. Assume a project that will provide an increase of $2 million
in cash flow because of favorable tax consequences, but carries a
two-cent decline in earning per share because of a write-off against
first quarter earnings.