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 theoretically be taken account of in making the related financial decision.
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It is only the incremental cash flows which should be taken account of in making the related financial decision.
  
  
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* [[Cashflow]]
 
* [[Cashflow]]
 
* [[Discounted cash flow]]
 
* [[Discounted cash flow]]
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*[[Incremental]]
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* [[Incremental costs]]
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* [[Incremental revenue]]
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* [[Sunk costs]]
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[[Category:The_business_context]]
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[[Category:Corporate_finance]]
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[[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'.


See also