Incremental cash flow
How the concept of lost sales can be related to the definition of incremental cash flow.
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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.
Part A During 2012 the Australian Company Woolworths Ltd (WOW) sold its subsidiary business called Dick Smith Electronics. Within 8 months of the FOR SALE sign going up Anchorage bought the Dick Smith Business for $20 million. This is the same amount Woolworths Ltd bought
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