Incremental Cash Flow
The additional operating cash flow that an organization receives from taking on a new project. A positive incremental cash flow means that the company's cash flow will increase with the acceptance of the project. Investopedia Says:
There are several components that must be identified when looking at incremental cash flows: the initial outlay, cash flows from taking on the project, terminal cost or value and the scale and timing of the project. A positive incremental cash flow is a good indication that an organization should spend some time and money investing in the project. Related Terms:
Capital Budgeting
Cash Flow
Operating Cash Flow - OCF
Terminal Value |