The change in net cash flows due to an investment project is called:

Question

Quizplus · Accepted Answer

Incremental cash flow represents the change in net cash flows resulting from a particular investment project. It takes into account the additional cash inflows and outflows that are expected to occur because of undertaking the investment project. Marginal profit and marginal revenue are not appropriate because they do not fully capture the impact of the investment project on cash flows. Marginal cash flow is not a commonly used term in finance or accounting.

The Change in Net Cash Flows Due to an Investment