Erosion, in a financial sense, is defined as: Multiple Choice The expense created on an annual basis from reducing the book value of fixed assets. The deterioration of the book value of new assets obtained when a new project is implemented. The diminishing cash flows created by a new project over time. The negative impact on the current cash flows from an existing product when a new product is introduced. The effect of taxation on the additional cash flows created when a new project or activity is implemented