software development cost and P/CFO 429, question, adjusted, solution, software

islandgyrl

For question 2B on Vol. 3, page 429, for the calculation of the P/CFO adjusted for the case where software development was expensed instead of capitalized, the solution simply subtracted the development cost from the cash flow from operations. Why is there no change in taxes paid due to expensing, unlike the calculation for P/E in question 1A? Taxes paid is a part of operating cash flow under US GAAP, unless IFRS is used, but the hypothetical company reports in "$".