incremental cash flows

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Incremental cash flows

Difference between the firm's cash flows with and without a project.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

incremental cash flows

Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson
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Among other things, the Transaction is expected to result in SMLP retaining approximately $85M of incremental cash flow annually, which will improve its overall credit profile, reduce its cost of capital, and create a more competitive MLP, while significantly reducing its reliance on the public equity capital markets.
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Incremental cash flow to investors from financing per dollar of sales
Amore premium price is placed on these brands because of the anticipated incremental cash flow associated with the brand.
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This investment is expected to generate $16.5 million per year in incremental cash flow, or approximately $0.04 per unit annually.
The third quarter results reflected positive incremental cash flow and earnings from the completion of the Westspur expansion project on our Saskatchewan crude oil system.

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