What is the importance of incremental cash flow, why it is required in the capital budgeting process?

Question

What is the importance of incremental cash flow, why it is required in the capital budgeting process?​

Charlotte · Answer

Answer:   Incremental cash flow projections are required for calculating a project's net present value (NPV), internal rate of    return (IRR), and payback period.  Projecting incremental cash flows may  also be helpful in the decision of whether to invest in certain assets that will appear on the balance sheet.

Camila

The ratio of
the length and breath of
a photo frame is 5.3. Find the length of
the photo frame If the breadth is 15

Write three numbers whose decimal expansions are non-terminating

recurring

1 thought on “What is the importance of incremental cash flow, why it is required in the capital budgeting process?”

Incremental cash flow projections are required for calculating a project’s net present value (NPV), internal rate of return (IRR), and payback period. Projecting incremental cash flows may also be helpful in the decision of whether to invest in certain assets that will appear on the balance sheet.

Leave a Reply to Charlotte Cancel reply