ECONOMICS

Detailed explanation-1: -What is incremental cash flow? Incremental cash flow is the cash inflow, or amount of money, a new project, product, investment, or campaign generates or subtracts from your company. Forecasting incremental cash flow helps companies decide whether or not a new investment or project will be profitable.

Detailed explanation-2: -Cash flows should always be considered on an incremental basis.

Detailed explanation-3: -The three primary classifications of cash flow are cash flow from operating activities, cash flow from financing activities, and cash flow from investing activities. All will appear on the statement of cash flows on a company’s financial statements.