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Plot the following points and find the distance between the points.
Incremental Cash Flows
The additional cash flow from taking on a new project, considered essential for analysis in capital budgeting.
Sunk Costs
Costs that have already been incurred and cannot be recovered or altered, not affecting future business decisions.
Capital Budgeting
Capital budgeting is the process by which a business evaluates and selects long-term investments based on their potential to generate profitable returns over time.
After Tax Cash Flow
The amount of cash that a business or individual has available after all tax obligations have been paid, indicating the net cash generated or used over a period.
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