Asked by Victor Nwakaihe on May 17, 2024
Verified
The incremental cash flows of a new venture tend to be easy to visualize, because the project is readily seen as separate and distinct from the existing business.
Incremental Cash Flows
The additional cash flow generated by a company from undertaking a particular project or investment.
New Venture
Refers to a newly established business entity created with the intention of entering a market.
- Acquire knowledge on the fundamental principle of incremental cash flow in project assessment, emphasizing its concern with both advantageous and adverse impacts.
Verified Answer
JM
Jillian MacWilliamMay 20, 2024
Final Answer :
True
Explanation :
Because a new venture is separate and distinct from the existing business, its incremental cash flows can be more easily identified and visualized.
Learning Objectives
- Acquire knowledge on the fundamental principle of incremental cash flow in project assessment, emphasizing its concern with both advantageous and adverse impacts.
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