Business Ratios Question:

What is Net incremental cash flow?

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Answer:

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.

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Define incremental cash flows received after the payback period are ignored?Where Net incremental cash flows are necessary?