A local bank is contemplating adding a new ATM to their lobby. They will need another phone line to provide communications that has a monthly cost of $50 per month. This is an example of

Question

Quizplus · Accepted Answer

The monthly cost of $50 for an additional phone line required for the new ATM represents an incremental cash flow because it is an additional expense that will be incurred due to the decision to add the ATM. Incremental cash flows are the changes in the firm's cash flows that occur as a direct consequence of accepting a project.

A Local Bank Is Contemplating Adding a New ATM to Their