Incremental cash flows are the anticipated changes in cash flow from the base case. The firm’s base-case projection must assess what the firm’s market share and cash flows would be if no new projects were implemented; in other words, the after-tax cash flows without the project. The firm’s planners must recognize that if nothing is done, customers may start buying competitors’ products in response to the marketing, new product development, and/or quality efforts of the competition. The base-case estimate should reflect these potential declines in cash flow.