Incremental cash flows: Difference between revisions
From ACT Wiki
Jump to navigationJump to search
imported>Doug Williamson (Layout.) |
imported>Doug Williamson (Strengthen recommendation.) |
||
| Line 1: | Line 1: | ||
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]] | ||
* [[Sunk costs]] | |||
[[Category:The_business_context]] | |||
[[Category:Corporate_finance]] | |||
[[Category:Investment]] | |||
Revision as of 11:20, 16 November 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'.
