Which of the Following Best Defines Incremental Earnings

question 84

Multiple Choice

Which of the following best defines incremental earnings?

• A)cash flows arising from a particular investment decision
• B)the amount by which a firm's earnings are expected to change as the result of an investment decision
• C)the earnings arising from all projects that a company plans to undertake in a fixed timespan
• D)the net present value (NPV)of earnings that a firm is expected to receive as the result of an investment decision
• E)the increase in cash flows resulting from a new product

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Definitions:

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