释义 |
incremental cash flows Incremental cash flowsDifference between the firm's cash flows with and without a project.Incremental Cash FlowsThe difference between a company's cash flow and its potential cash flow, should it undertake a certain project. That is, a company nets the potential cash flow from a project it is considering and subtracts its current cash flow in order to calculate the incremental cash flow. This is important in the risk analysis of a potential project; a negative incremental cash flow indicates that the project is likely not worth the risk. A positive incremental cash flow shows that, all other things being equal, the project may be beneficial for the company.incremental cash flows see RELEVANT CASH FLOWS. |