Incremental cash flows: Difference between revisions
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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 theoretically 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 == | ||
* [[Cashflow]] | * [[Cashflow]] | ||
* [[Discounted cash flow]] | * [[Discounted cash flow]] | ||
Revision as of 10:36, 22 June 2016
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.
For example, 'Sunk costs don't count'.
