Should Caledonia focus on cash flows or accounting profits in making

Should Caledonia focus on cash flows or accounting profits in making its capital-budgeting decisions? Should the company be interested in incremental cash flows, incremental profits, total free cash flows, or total profits
How does depreciation affect free cash flows?
How do sunk costs affect the determination of cash flows?
Calculate the change in EBIT, Taxes, and Depreciation (this become an input in the calculation of Operating Cash Flow in Section II).