Answer:
$1.95 million
Explanation:
Incremental cash flow is defined as the extra operating cash flow gained by an organization from launching a new product or service. Additional cash flow implies that the cash flow of the company will be increased with the introduction of the new product or service.
$10 million - (40% *$10 million) - $1 million = $5 million
$5 million × 0.6 = $3 million
$3 million × 0.65 = $1.95 million`