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)Cash flows that occur only if the project is taken

Question

Quizplus · Accepted Answer

Incremental cash flows are those that occur as a direct result of taking on a project, meaning they would not occur if the project were not undertaken.

Which of the Following Is the Best Example of an Incremental