Incremental cash flows: Difference between revisions
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* [[Opportunity cost]] | * [[Opportunity cost]] | ||
* [[Scarce resource analysis]] | * [[Scarce resource analysis]] | ||
* [[Sunk cost fallacy]] | |||
* [[Sunk costs]] | * [[Sunk costs]] | ||
Revision as of 01:12, 7 August 2021
In financial decision making, the incremental cash flows are those which will be different, depending on whether or not the decision is implemented.
It is only the incremental cash flows which should be taken account of in making the related financial decision.
For example, 'Sunk costs don't count'.
