Question

The difference between a firm's future cash flows if it accepts a project and the firm's future cash flows if it does not accept the project is referred to as the project's: Group of answer choices

Answer 1

Incremental cash flows.

Step-by-step explanation:

An incremental cash flow can be defined as the additional cash flow with respect to operating activities or costs that is generated when an organization from executing a new project entirely.

Hence, the difference between a firm's future cash flows if it accepts a project and the firm's future cash flows if it does not accept the project is referred to as the project's Incremental cash flows.

For example, when Toyota purchase Uber transport.