Question: Incremental cash flows are defined as: Question 6 Answer a . Any change in the future net income of a firm that results from a
Incremental cash flows are defined as:
Question Answer
a
Any change in the future net income of a firm that results from a new project being implemented.
b
The total cash flows of a firm from the point at which a project is implemented until the point at which the project ends.
c
Those cash flows that have already occurred and will not change whether or not a new project is accepted.
d
The cash flows that are foregone when a new project or activity is accepted.
e
The changes in the firm's future cash flows that are a direct consequence of accepting a project.
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