A company that analyses projects based on after tax cash flows is considering investing in a project. Accepting this project will cause an increase in the company's expected level of income tax payable. This additional amount of tax:

	must be taken into account when analysing the project as an additional cash inflow
	must be taken into account when analysing the project as an additional cash outflow
	only affects accounting profits and not cash flows which means it will not affect the capital budgeting decision
	only affects cash flows and not accounting profits which means it will not affect the capital budgeting decision