The Incremental Cash Flows of a Project Are Best Defined

question 8

Multiple Choice

The incremental cash flows of a project are best defined as

• A)the cash received from the additional sales generated by the project.
• B)any change in a firm's cash flows resulting from the addition of the project including opportunity costs.
• C)the cash received or lost from changes in the sales of a firm's current products as a result of adding the project.
• D)the increase or decrease in a firm's cash flows resulting from adding the project,excluding all sunk and opportunity costs.
• E)the total cash flows of a firm once the new project is completely integrated into the firm's operations.

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Definitions:

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