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Use the binomial theorem to expand and simplify.
Incremental Cash Flows
The additional operating cash flow that an organization receives from taking on a new project, distinct from the organization's existing cash flow.
Future Net Income
An estimation of a company's future earnings after all expenses and taxes have been subtracted from revenue.
Project
A project is a temporary endeavor designed to produce a unique product, service, or result with a defined beginning and end, often constrained by funding or deliverables.
Erosion Costs
Costs that occur when a new project leads to a decline in revenues or increase in expenses of existing products or services.
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