Erosion is the additional cash generated by a new project beyond the current cash flow with...
Erosion is the additional cash generated by a new project beyond the current cash flow with the addition of a specific new project.
True
False
Homework Answers
Answer is False
When additional cash is generated by a new project it is incremental cash flow generated and it is value added by the new project and it cannot be termed as Erosion. It is termed as "Synergy" since additional cash is generated.
Erosion happens when new project reduces cash flow beyond the current cash flow with the addition of a specific new project
Hence answer is false
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