Incremental cash flows

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

• Cashflow
• Discounted cash flow
• Incremental
• Incremental costs
• Incremental revenue
• Opportunity cost
• Scarce resource analysis
• Sunk costs