7-7 Incremental Cash Flows IMPORTANT Ask yourself this question Would the cash flow still exist if the project does not exist? SIf yes, do not include it in your analysis SIf no. include it Irwin/McGraw-Hill CThe McGraw-Hill Commpanies, Inc, 2001©The McGraw-Hill Companies, Inc.,2001 7- 7 Irwin/McGraw-Hill Incremental Cash Flows IMPORTANT Ask yourself this question Would the cash flow still exist if the project does not exist? If yes, do not include it in your analysis. If no, include it