Difference between revisions of "Incremental cash flows"
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In financial decision making, the incremental cash flows are those which will be different, depending on whether or not the decision is implemented. | 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 | + | It is only the incremental cash flows which should be taken account of in making the related financial decision. |
| Line 10: | Line 10: | ||
* [[Cashflow]] | * [[Cashflow]] | ||
* [[Discounted cash flow]] | * [[Discounted cash flow]] | ||
| + | *[[Incremental]] | ||
| + | * [[Incremental costs]] | ||
| + | * [[Incremental revenue]] | ||
| + | * [[Sunk costs]] | ||
| + | |||
| + | [[Category:The_business_context]] | ||
| + | [[Category:Corporate_finance]] | ||
| + | [[Category:Investment]] | ||
Latest revision as of 14:36, 21 December 2020
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'.
