Which of the following best defines incremental earnings?


A) cash flows arising from a particular investment decision
B) the amount by which a firm’s earnings are expected to change as a result of an investment decision
C) the earnings arising from all projects that a company plans to undertake in a fixed time span
D) the net present value (NPV) of earnings that a firm is expected to receive as the result of an investment decision


Answer: B


Boom! Correct answer