Any changes to a firm's projected future cash flows that are caused by adding a new project are referred to as:

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Changes in cash flows caused by adding a new project are referred to as incremental cash flows. This is because they represent the additional cash flows that the firm expects to receive as a result of undertaking the project. The other options (eroded cash flows, deviated projections, directly impacted flows, opportunity cash flows) do not accurately describe the changes in cash flows caused by a new project. Incremental cash flows refer to the changes that may occur in a firm's projected future cash flows as a result of adding a new project to its portfolio. These changes include increases or decreases in revenue, costs, capital expenditures, taxes, and working capital needs. It is important to calculate the incremental cash flows correctly when evaluating the potential profitability of a new project.

Any Changes to a Firm's Projected Future Cash Flows That