--%>

Incremental cash flow

How the concept of lost sales can be related to the definition of incremental cash flow.

E

Expert

Verified

Whenever the new capital project is under taken it can compete with the existing project, making the old project to experience loss in the sales revenue.  From an incremental cash flow standpoint, incremental revenue of the new project is the total sales revenue linked with new project minus lost sales revenue from the old project.

   Related Questions in Financial Accounting

  • Q : Relative and absolute purchasing power

    Explain about the purchasing power parity, both the relative and absolute versions. List the things which results in the deviations from purchasing power parity?

  • Q : Calculation of NPV Calculation of NPV:

    Calculation of NPV: Calculation of NPV is done through the same method of discounting as described above. However in this case the rate is predefined for  discounting. It is the cost of overall long term resources, whether debt or equity. This co

  • Q : French Association of Private Companies

    In the year 1995, working group of the French chief executive officers was formed by the Confederation of French Industry (CNPF) and the French Association of Private Companies (AFEP) for studying the structure of the French corporate governance. Group has reported th

  • Q : Prepare the balance sheet At the end of

    At the end of March, 2006 the balances in the various accounts of TTTTT & Company are as follows: Rs. in million Accounts Balance Equity capital 120 Preference capital 30 Fixed assets (net) 217 Reserves and surplus 200 Cash

  • Q : China emerged as the important

    Explain facts that China has emerged as the second most imperative recipient of the FDI after United States in recent years?

  • Q : What are equipment expenses What is

    What is equipment expense or what are equipment expenses?

  • Q : Define Financial Calculator Financial

    Financial Calculator: A financial calculator is an electronic calculator which executes financial functions commonly required in business and commerce communities.

  • Q : Pre-requisites for accomplishment of

    Write down the pre-requisites for triumphant accomplishment of uniform costing?

  • Q : Human race in our modern world Here are

    Here are two papers addressed to the in-class essay from the previous class. Study them in the context of the exact wording of the assignment and take some notes that will enable you to refer to specific features of the two papers when talking about their relative qua