[Verse 1] When a project comes your way And you need to find the right display Of cash flows that truly count Only incremental amounts Money that will change because Of this decision and its cause Not the flows that stay the same That's the relevant cash flow game [Chorus] Relevant means it will change Irrelevant stays the same range Sunk costs are gone, let them go Opportunity costs must show Incremental is the key Future flows are what we see Relevant versus irrelevant That's what makes your analysis significant [Verse 2] Sunk costs are money spent before Decisions made, they're out the door Research costs from last July Cannot change, so don't you try To include them in your math They won't alter your project path What is done cannot be undone Sunk cost battle's already won [Chorus] Relevant means it will change Irrelevant stays the same range Sunk costs are gone, let them go Opportunity costs must show Incremental is the key Future flows are what we see Relevant versus irrelevant That's what makes your analysis significant [Bridge] Opportunity costs are what you lose When this project path you choose Best alternative foregone Must be counted, must move on If you rent instead of buy Calculate that benefit high What you give up has a price Include it in your analysis [Verse 3] Overhead that's allocated But won't change, it's overstated Only incremental matters Don't let irrelevant costs scatter Your focus from what's real Future cash flows you can feel Changing with your yes or no That's the only way to go [Chorus] Relevant means it will change Irrelevant stays the same range Sunk costs are gone, let them go Opportunity costs must show Incremental is the key Future flows are what we see Relevant versus irrelevant That's what makes your analysis significant [Outro] Future flows that change the game Only these deserve the name Relevant for your decision Use this rule with precision
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