[darawk]

Profit is not necessarily the same thing as net income. Net income is Revenue minus Cost of Goods Sold. Overall profit includes capex. If you use the 'net income' definition, then yes, he makes that point.

[aslkdjaslkdj1]

You are thinking of gross income. Net income includes depreciation for assets acquired under capital expenses.

[darawk]

You're right. Gross income is the correct measure. Then his paper uses the wrong measure too.