Incremental cash flows from a project =
A)Firm cash flows without the project plus or minus changes in net profit.
B)Firm cash flows with the project plus firm cash flows without the project.
C)Firm cash flows with the project minus firm cash flows without the project.
D)Firm cash flows without the project plus or minus changes in revenue with the project.

Question

Quizplus · Accepted Answer

Incremental cash flows refer to the difference in cash flows between taking on a project and not taking on a project. Therefore, it is the firm cash flows with the project minus the firm cash flows without the project.

Incremental Cash Flows from a Project =