Cannibalization
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Cannibalization is the situation when a new project reduces cash flows that the firm would otherwise have had.
Definitions
According to Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition),
- Cannibalization. The situation when a new project reduces cash flows that the firm would otherwise have had.
Related concepts
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.
