Incremental cash flow
Incremental cash flow one of those cash flows that arise solely from the asset that is being evaluated.
Definitions
According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),
- Incremental cash flow. Those cash flows that arise solely from the asset that is being evaluated.
According to Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition),
- Incremental cash flows. Cash flows that will occur if and only if the firm takes on a project.
Related concepts
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.
