Any changes to a firm's projected future cash flows that are caused by adding a new project are referred to as which one of the following?

Question

Quizplus · Accepted Answer

Changes to a firm's cash flows that result from adding a new project are referred to as incremental cash flows. These incremental cash flows include any additional cash inflows and outflows that will be generated by the new project. This information is critical in determining whether the project will be profitable and if it should be pursued by the firm. Choices A, B, D, and E are not correct terms used to describe changes in a firm's cash flows from a new project.

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