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React: When calculating property-level cash flows, you should utilize earnings before interest payments because on-going capital...

React: When calculating property-level cash flows, you should utilize earnings before interest payments because on-going capital expenditures are roughly equal to depreciation allowances.

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I will not be including interest payment while calculation of the operating cash flows and deciding upon the property level cash flows because property level cash flows will be reflective of the operational income of the business and it will be including the income which are generated from the operations so this will not be including interest income because interest income are not operational in nature and hence they are non operating expenses and they should not be accounted for property level cash flows.

I do not agree with this statement because I will be utilising earning after interest payment it and it will be helpful for me in order to have a better picture of the organisational performance on the operational front in form of determination of the property level cash flows because interest are mostly not included for operating purposes.

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