The term ___________ refers to the fact that these cash flows reflect the amount by which the firm's total after-tax free cash flows will change if the project is adopted.

Question

Quizplus · Accepted Answer

Incremental cash flows are those that reflect the change in a firm's total after-tax free cash flows if a project is adopted. It takes into account the additional revenue and expenses that are associated with the project compared to the status quo. Periodic cash flows refer to the stream of cash flows that occur at regular intervals (such as monthly or annually) and ending cash flows refer to the cash flows that occur at the end of a project's life.

The Term ___________ Refers to the Fact That These Cash