--%>

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 : Deviations from purchasing power parity

    Explain about deviations from purchasing power parity for countries competitive positions within the world market.

  • Q : Claim depreciation When an asset is

    When an asset is purchased and the similar is not employed for the financial year, must the company charge the depreciation and the reason for the similar?

  • Q : Prepare journal entry to record

    On December 31, 20x1, the Juniper Company purchase a group of four assets for a total cost of $850,000. An independent appraiser assesses the fair value of each asset as follows: Asset Fair Value Land $100,000 Building 600,000 Equipment 250

  • Q : Computing cross-rate matrix Compute

    Compute cross-rate matrix for French franc, Japanese yen, German mark, and the British pound. Utilize most recent European term quotes in order to compute the cross-rates in order that the triangular matrix result is same as that of the portion above diagonal in Exhib

  • Q : Asset-allocation funds Mutual funds

    Mutual funds that hold both bonds and stocks. Some asset-allocation funds follow specified allocation percentages and others take advantage of current condition. Those that take advantage of current condition is higher risk, because the fund manager tries to adjust the allocations to take advanta

  • Q : Highlights of Lobbying Define the term

    Define the term Lobbying in the the act of attempting to persuade affiliates of a legislative body to cast their vote in favor of the lobbyist.

  • Q : Define uniform costing Give a short

    Give a short introduction about the term uniform costing?

  • Q : Darwin and Moths Conduct an internet

    Conduct an internet search by using the terms Darwin and Moths ("Darwin Moths", without the quotes). Learn about this famous illustration of Darwin's theory of natural selection, and write a brief paragraph describing it.

  • Q : Goals of Social Democrats What were the

    What were the goals of Social Democrats? What did Anarchists want?

  • Q : Cause why relationships tend to come

    Identify and briefly explain the patterns in terms of how relationships tend to come apart (not together) or deteriorate. Use a real or hypothetical illustration to describe each of such phases.