If a project's cash flows exceed the project's incremental cash flows,it is likely that the:
A) project interacts with other aspects of the firm.
B) project must have high depreciation expense.
C) opportunity cost of capital must be high.
D) project will have a negative NPV.

Question

Quizplus · Accepted Answer

If a project's cash flows exceed its incremental cash flows, it suggests that the project interacts with other aspects of the firm, such as shared resources or synergies, affecting the overall cash flow.

If a Project's Cash Flows Exceed the Project's Incremental Cash