Which of the following is the best example of an incremental cash inflow/outflow?
A) Cash flows that are achieved by diverting sales from other projects of the firm
B) Cash flows that are associated with the financing of a project
C) Cash flows that occur a little at a time
D) What the total cash flows will be to the company if the project is undertaken as opposed to what they would have been if the project had not been undertaken

Question

Quizplus · Accepted Answer

Incremental cash inflow/outflow refers to the additional cash flows a company will receive or pay out as a direct result of undertaking a specific project. It compares the cash flows with the project to those without the project, highlighting the project's direct financial impact on the company.

Which of the Following Is the Best Example of an Incremental