incremental cash flows

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

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In that respect, premised on the second feasibility report submitted by MESB to the Government in January 2013 and latest available information, RAM has been made to understand that the Spur Link is to be viewed as a separate project to be funded via additional debt as well as incremental cash flows from the introduction of potentially 2 new toll-plazas.
This transaction will deliver incremental cash flows and the potential for long-term earnings growth while positioning ALLETE Clean Energy in new markets.
They should have authorised a $1bn buyback and they would use incremental cash flows to fund it," Gabelli said.
It is commonplace in the finance literature that the appropriate method for acquirers seeking to value an acquisition is to identify the expected incremental cash flows from the merger.
It does not reflect the risk associated with the incremental cash flows associated with a new project, new building, or new piece of equipment.
The incremental cash flows that should be built into the capital investment model should be based on an assumption of declining cash flows in the future.
5) The denial of a loss deduction in such cases is harsh where the taxpayer continues the business for a period of time in an effort to generate incremental cash flows that recoup prior losses.
RCIL intends to enter into discussions with Stratagem's senior management in order to reduce operating and corporate overheads where possible, allowing incremental cash flows to be redirected as appropriate.
Bennett, Terra's President and CEO, said, "Current nitrogen prices and natural gas costs enable us to generate incremental cash flows through the operation of the Blytheville plant.
This merger is strategically significant to Iwerks in that it directly supports our ability to compete even more effectively with Imax by generating incremental cash flows - derived by being the premier provider of ride simulation attractions - that can then be invested in accelerating our giant screen business expansion,'' said Charles Goldwater, chairman and chief executive officer.
Hence, we'll forecast the incremental cash flows from assets, excluding any cash flows associated with financing (such as interest, principal payments and dividends).
These joint venture pipeline projects and other growth initiatives have placed temporary pressure on credit measures as incremental cash flows lag investment expenditures.

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