Chapter 7 Net Present value andr Capital Budgeting 7.1 Project cash flows: a first look 7.1.1 Relevant cash flows A relevant cash flows for a project is a change in the firm's overall future cash flow that comes about as a direct consequence of the decision to take that project. The relevant cash flow also called the incremental cash flows associated with the project. Incremental cash flows is the difference between a firm's future cash flows with a project or without the project.Chapter 7 Net Present Value and Capital Budgeting 7.1 Project cash flows: a first look 7.1.1 Relevant cash flows • A relevant cash flows for a project is a change in the firm’s overall future cash flow that comes about as a direct consequence of the decision to take that project. • The relevant cash flow also called the incremental cash flows associated with the project. • Incremental cash flows is the difference between a firm’s future cash flows with a project or without the project