--%>

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 : Contingent exposure and its benefits

    Describe the contingent exposure and also discuss some of the benefits of using currency options in order to maintain this type of currency exposure.

  • Q : Rule of nominal account Why the rule of

    Why the rule of nominal account is just opposite with the rule of personal account and real account?

  • Q : Factors considering before investing

    Being an investor, what are all factors you would consider before investing within the emerging stock market of developing country?

  • Q : What is Creditors Equity What is

    What is Creditor's Equity. Also write down its formula.

  • Q : Describe Long Holding Period Describe

    Describe Long Holding Period briefly with suitable example?

  • Q : Case study of a pharmaceutical group in

    The XYZ Group, a supplier of pharmaceutical equipment, systems and services, has its head office in London and primary production facilities in the US. The company also has a successful subsidiary in South Africa, which was established in 1990. XYZ South Africa does n

  • Q : Assurance services Significant costs

    Significant costs associated with the disposal of asset. Accounting for asset retirement obligations requires estimating the cost and discounting estimate. The present value added to the asset's depreciable base and a liability is recorded for the obligation. Every year, interest expense is added

  • Q : Case study of a wind turbine for rural

    The goal of this long problem is to validate the turbine performance estimates in specific (XYZ) wind regimes, and estimate its cost.  Below is a list of tasks you will need to accomplish, but you are not limited to these if you want to do more:  

  • Q : Sale return or return inward Describe

    Describe Sale return or return inward in brief.

  • 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