(Solved):In what types of situations is incremental analysis most useful?

 

Question

In what types of situations is incremental analysis most useful?

 

EXPERT ANSWER

Incremental analysis is a mathematical technical tool for computing the financial viability of a proposal. Under this analysis, the incremental or decremental benefit or cost is computed based on the available financial and economic facts related to the proposal.

In the following situations, the incremental analysis would be useful: –

(1) Replacing the asset with a new asset.

(2) Addition of a new

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