Understanding Cash Flows Read Section 12-1 And Watch this follow-up explanation Cash Flow Explanation Link) Then match each of the examples below with important cash flow consideration A project for a new holiday apprel A Sunk Cost - the cost already happened and company happen seasonality but are should not affect the current decision at forecasted annually hand Revenues or Costs that occur if and B. Positive Externality only if the project occurs C. Timing of Cash Flows The Cardellas purchased tickets to D. Incremental cash flows Disneyland, but everyone woke up sick and no one wants to go. The tickets are E. Negative Externality called Cannibalization said to be a... F. Opportunity cost (I also hope this never happens). A corporate jet was purchased 2 years ago. This could be utilized for a new project under consideration, but is considered a(n).... because it could be sold instead General Mills launched a new Pokemon Cereal so Andrew wanted to try it out instead of Lucky Charms. This is an example of a Crayola launched a new color-stamping that only works on their ColorWonder paper. This new product is expected to also increase the sales of existing color- wonder paper. This is called a