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QUESTION
Which of the following would not be included in calculating the incremental cash flow for a project?
Which of the following would not be included in calculating the incremental cash flow for a project?
a. The firm expects sales of the new product to be $5,000,000 per year.
b. Working capital will decrease by $100,000 at t=0
c. The firm must pay $3,000,000 for equipment to produce the new drink.
d. The firm expects sales of existing drinks to decrease by $500,000 per year because current customers will switch to the new drink.
e. The property on which the plant will be built has bought in1950 for $10,000.
