Incremental cash flows come about as a direct consequence of taking a project under consideration.
This is further explained below.
Generally, The prospective increase or reduction in a firm's cash flow that is attributed to the acceptance of a new project or investment in a new asset is referred to as the incremental cash flow of the company. A positive incremental cash flow is an encouraging indicator that the investment will generate a greater profit for the firm than the costs that it will incur as a result of making the investment.
In conclusion, Taking into consideration a project will inevitably result in the generation of additional cash flows in some form or another.
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