Which one of the following is an example of an incremental cash ﬂow?

Question

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An incremental cash flow refers to a change in the cash flow that is caused by a particular decision. Option C represents an example of an incremental cash flow because the rent on new machinery is an additional cost that will be incurred as a direct result of the upcoming project. The other options do not represent incremental cash flows because they do not result from a particular decision or change in circumstances. Option A is a fixed cost and Option B represents an existing cost, both of which would remain the same regardless of the decision being made. Option D represents a sunk cost, which is a cost that has already been incurred and cannot be changed. Option E also represents an existing cost that is not affected by the upcoming project.

Which One of the Following Is an Example of an Incremental