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As an accountant, What are net incremental cash flows?

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Question added by Deleted user
Date Posted: 2014/09/02
VENKITARAMAN KRISHNA MOORTHY VRINDAVAN
by VENKITARAMAN KRISHNA MOORTHY VRINDAVAN , Project Execution Manager & Accounts Manager , ALI INTERNATIONAL TRADING EST.

Net incremental cash flows are the combination of the cash inflows and the cash outflows occurring in the same time period, and between two alternatives. For example, a company could use the net incremental cash flows to decide whether to invest in new, more efficient equipment or to retain its existing equipment.Net incremental cash flows are necessary for calculating an investment's:

NET PRESENT VALUE

INTERNAL RATE OF RETURN

PAYBACK PERIOD

 

 

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