Cash Flow for a project

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shfba32

Business Finance

Description

What is an incremental cash flow for a project? What concepts do we need to examine to help understand how to estimate the incremental cash flow of a project? What else is needed for deciding whether or not to choose a project? 300 Words

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Explanation & Answer

Attached.

Incremental cash flow – Outline
Thesis statement: Incremental cash flow is the additional cash inflows that a firm receive from
undertaking new investments.

I.

Important concepts in estimating cash flows
A. Sunk costs
B. Opportunity costs
C. Externalities
D. cannibalization

II.

Other factors to consider
A. Changes in net working capital
B. Risk factor of the project


Running head: INCREMENTAL CASH FLOW FOR A PROJECT

Incremental Cash Flow for a Project
Name
Institution

1

INC...


Anonymous
I was struggling with this subject, and this helped me a ton!

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