Incremental cash flows represent the additional cash flows expected as a direct result of the proposed project.

Question

Quizplus · Accepted Answer

Incremental cash flows are the cash flows that are expected to be generated as a result of a specific project or investment. They represent the cash flows that would not have occurred if the project had not been undertaken. Therefore, incremental cash flows are additional cash flows resulting directly from the proposed project.

Incremental Cash Flows Represent the Additional Cash Flows Expected as a Direct