Incremental cash flows: Difference between revisions
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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. | ||
For example, 'Sunk costs don't count'. | For example, 'Sunk costs don't count'. | ||
== See also == | == See also == | ||
* [[ | *[[Cash]] | ||
*[[Cash balance]] | |||
*[[Cash flow]] | |||
* [[Cash flow statement]] | |||
* [[Discounted cash flow]] | * [[Discounted cash flow]] | ||
*[[Incremental]] | |||
* [[Incremental costs]] | |||
* [[Incremental revenue]] | |||
* [[Opportunity cost]] | |||
* [[Payback period]] | |||
* [[Return on investment]] (ROI) | |||
* [[Scarce resource analysis]] | |||
* [[Sunk cost fallacy]] | |||
* [[Sunk costs]] | |||
[[Category:The_business_context]] | |||
Latest revision as of 14:42, 8 October 2023
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'.
