Business Finance
Discuss How Observation and Interpretation Can Guide You

Question Description

I’m studying for my Business class and don’t understand how to answer this. Can you help me study?

The appropriate cash flows for evaluating a corporate investment decision are: (Points : 1)
       incremental additional cash flows.
       marginal after-tax cash flows.
       incremental after-tax cash flows.
       investment after-tax cash flows.

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Final Answer

incremental cash flow is the additional cash flow that an organization receive from taking on a new project. A positive incremental cash flow means that a company's cash flow will increase with the acceptance of the project.

University of Maryland

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