Question

Any changes to a firm's projected future cash flows that are caused by adding a new project are referred to as:________

Answer 1

The additional operating cash flow after a new project   is called  incremental cashflow

The increased operating cash flow that a company obtains as a result of taking on a new project is known as incremental cash flow. If the project is approved, the company will experience an increase in cash flow, which is known as a positive incremental cash flow. A project should receive funding from an organization if the incremental cash flow is positive.

When examining incremental cash flows, it is important to take into account several factors, including the original investment, cash flows from taking on the project, terminal cost or value, and the scope and time of the project. The net cash flow from all cash inflows and outflows during a certain period and between two or more company decisions is known as incremental cash flow.

Learn more about  cashflow at

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