Incremental Cash Flows: Definition and Importance

Incremental Cash Flows

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Incremental cash flows are -

A. cash flows that can be attributed to specific tax deductions like depreciation and interest expense.

B. cash flows from a project that occur after the initial capital expense.

C. cash flows that occur only if a project under consideration is accepted.

D. the additional cash flows from a project for a given increase in capital invested.

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A. B. C. D.

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