Incremental Cash Flows Refer to

question 143

Multiple Choice

Incremental cash flows refer to

• A) the difference between after-tax cash flows and before-tax accounting profits.
• B) the new cash flows that will be generated if a project is undertaken.
• C) the cash flows of a project, minus financing costs.
• D) the cash flows that are foregone if a firm does not undertake a project.

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Definitions:

Orbital Speed

The speed at which an object must travel to maintain its orbit around a celestial body, determined by the gravitational pull of the body and the distance from it.

GEO

Geostationary Earth Orbit; a circular orbit 35,786 kilometers above the Earth's equator and following the direction of the Earth's rotation.

LEO

Low Earth Orbit, referring to satellites that orbit the Earth at altitudes between 160 to 2,000 kilometers, primarily used for telecommunications and earth observation.

MEO

Medium Earth Orbit, a region of space around Earth located above low Earth orbit (LEO) and below geostationary orbit (GEO), often used for satellites that require broader coverage than LEO and more precision than GEO.