In measuring cash flows,we are interested only in the incremental or incremental after-tax cash flows that are attributed to the investment proposal being evaluated.

Question

Quizplus · Accepted Answer

Only the incremental or incremental after-tax cash flows that can be directly attributed to the investment proposal being evaluated are relevant for decision-making purposes. Other factors or cash flows that are not directly related to the project may cloud the analysis and lead to incorrect conclusions.

In Measuring Cash Flows,we Are Interested Only in the Incremental