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 theoretically be taken account of in making the related financial decision.
It is only the incremental cash flows which should be taken account of in making the related financial decision.




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== See also ==
== See also ==
* [[Cashflow]]
*[[Cash]]
*[[Cash balance]]
*[[Cash flow]]
* [[Cash flow statement]]
* [[Discounted cash flow]]
* [[Discounted cash flow]]
*[[Incremental]]
* [[Incremental costs]]
* [[Incremental revenue]]
* [[Opportunity cost]]
* [[Scarce resource analysis]]
* [[Sunk cost fallacy]]
* [[Sunk costs]]
[[Category:The_business_context]]
[[Category:Corporate_finance]]
[[Category:Investment]]

Latest revision as of 22:55, 18 July 2022

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