What term is used for the difference between the cash flow if a project is implemented, and the cash flow if it is not?
A) Differential cash flow
B) Opportunity cost
C) Incremental cash flow
D) Internal return

Question

Quizplus · Accepted Answer

The term used for the difference between the cash flow if a project is implemented, and the cash flow if it is not, is incremental cash flow. The incremental cash flow is the additional cash flow that a company will receive from taking on a new project compared to not taking on the project at all. The other options, such as differential cash flow, opportunity cost, and internal return, may be related to financial analysis, but they do not specifically refer to the difference between the cash flow with and without a project.

What Term Is Used for the Difference Between the Cash