The present value of the expected net cash flows of all the projects undertaken by a firm will most likely exceed the present value of the firm's expected net profit after tax, because:

a. income is reduced by dividends paid, whereas cash flow is not.

b. cash flows lead to changes in net working capital, whereas sales do not.

c. income is reduced by depreciation and other non-cash charges, whereas cash flows are not.

d. income is reduced by taxes paid, whereas cash flow is not.

e. there is a greater probability of actually receiving the projected cash flows than the forecasted income.