The cash flows of a new project that come at the expense of a firm's existing projects are called:

Question

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Cash flows that come at the expense of existing projects are known as erosion costs. These costs arise due to the decrease in the cash inflows of the existing projects caused by the introduction of a new project. Erosion costs are an important consideration when evaluating the feasibility and profitability of a new project.

The Cash Flows of a New Project That Come at the Expense