The guiding rule in deciding if a free cash flow is incremental is to look at the company with,versus without,the new project.

Question

Quizplus · Accepted Answer

When determining if a free cash flow is incremental, the guiding rule is to compare the company with the new project to the company without the new project. This allows for the identification of any additional cash flow generated as a result of the new project. Therefore, the statement is true.

The Guiding Rule in Deciding If a Free Cash Flow