The incremental cash flows for a project are estimated as:

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Incremental cash flows for a project refer to the net change in the company's cash flows resulting from a particular project. It is crucial to consider the after-tax cash flows because they provide a better picture of the project's profitability. Taxes are a significant expense, and they impact the company's overall cash flows. Therefore, cash flows after taxes provide a more accurate estimate of how profitable a project will be for the company.

The Incremental Cash Flows for a Project Are Estimated As