incremental cash flows

(redirected from Incremental Cash Flow)

Incremental cash flows

Difference between the firm's cash flows with and without a project.

Incremental Cash Flows

The difference between a company's cash flow and its potential cash flow, should it undertake a certain project. That is, a company nets the potential cash flow from a project it is considering and subtracts its current cash flow in order to calculate the incremental cash flow. This is important in the risk analysis of a potential project; a negative incremental cash flow indicates that the project is likely not worth the risk. A positive incremental cash flow shows that, all other things being equal, the project may be beneficial for the company.

incremental cash flows

see RELEVANT CASH FLOWS.
Mentioned in ?
References in periodicals archive ?
AMAK expects to be able to process gold from the ancient tailings in Guyan using existing equipment in the short term, providing significant incremental cash flow.
The market power and cost advantage supporting a moat for Electricite de France s generation in the UK drove out performance in the auction and brings incremental cash flow for EDF s investors.
Amore premium price is placed on these brands because of the anticipated incremental cash flow associated with the brand.
interest will generate incremental cash flow if and when the Candover 2001 Fund
5 million per year in incremental cash flow, or approximately $0.
Subordinated/Mezzanine Debt Advantages Disadvantages Senior Debt Cheapest form of financing May not cover entire No loss of ownership financing need Interest is tax deductible Least amount of Most readily available operational flexibility source of capital Must be secured, potentially with a personal guarantee Subordinated/ Less (or zero) loss of More expensive than Mezzanine Debt ownership than equity senior debt Takes the form of equity Will restrict cash but is less expensive positions and may Involvement of mezzanine result in warrant financiers as objective positions counsel Financial disciplines Typically does not and controls imposed amortize, providing incremental cash flow.
After the assumptions regarding reimbursement, expected incremental cash flow, and clinical volume are discussed and validated, the proposals are evaluated based upon their net present value.
For many, these assets yield no incremental cash flow, and due to underutilization, often create a drag on corporate earnings.
Although CWI's cash usage is up this quarter compared to last quarter, this investment rate is appropriate given the costs of completing development of the new L Gas Plus engine, which will deliver incremental cash flow later this year.
Creditek says it has generated billions of dollars of incremental cash flow for its Fortune 1000 and midsized clients in all industries.
Ramsbottom continued, "Agrifos' business is expected to provide incremental cash flow and diversifies the products, markets, location, and raw materials of our existing natural gas-based nitrogen fertilizer plant in East Dubuque, Illinois.
We anticipate that incremental cash flow from the completion of additional capital-growth projects at the partnership between now and the fourth quarter 2016 will allow us to increase dividends and deliver long-term value to our shareholders.

Full browser ?