--%>

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 : Holding Period Describe the term

    Describe the term Holding Period?

  • Q : Accounting Required parts are clearly

    Required parts are clearly describes at the end of the questions and additional resource contains the journal article related to question three.. Approx 2000 word assignment.. First Question is of not more than 1000 words to make memorandum and its example is given at end of assignment and require

  • Q : Define Fixed Overhead Variance Give a

    Give a short introduction about the term ‘Fixed Overhead Variance’?

  • Q : Why farmers were angry at Railroad

    Why were farmers angry at the Railroad companies?

  • Q : Stages in the life cycle of a family

    There are seven typical stages in the life cycle of a family with children. Fully explain and give an example to describe each of those seven stages.

  • Q : Matlab Applications in Digital Signal

    Digital signal processing appears like a nightmare for students as it is most difficult and tricky subject in engineering core curriculum. If you are getting troubles in digital signal processing assignment or related project, then move

  • Q : Case study of gene expression analysis

    The paper by Golub et al. that was the focus of the second part of the BioConductor practical was the first analysis of its kind, demonstrating that gene expression analysis could potentially be used to classify leukaemia sub-types. Since its publication in 1999 there

  • Q : Eliminating exposure of the currency

    Banks find it essential in order to accommodate their client’s requirements for buying or selling foreign exchange forward, in several instances for the hedging purposes.  How the bank can eliminate the exposure of the currency it has made for itself by acc

  • Q : Development phases of Friendship There

    There are six developmental phases of how friendships develop. Identify each phase in sequence and discuss the characteristics of each phase by using real or hypothetical example to illustrate this developmental path.