Answer:
a. incremental cash flows.
Explanation:
Incremental cash flows is a capital budgeting technique used to determine whether to accept or reject the project. Analysis that considers incremental cashflow evaluates the net benefits of accepting the project versus if it is not accepted. This includes incremental revenue or sales, incremental expenses, changes in net working capital. Erosion effects is part of incremental cashflow which happens when a part of regular sales declines due to acceptance of a project.
