Which of the following factors should kellogg systems inc include in its capital budgeting analysis? check all thatapply

a. kellog's replacement of an insufficent machine with a new more efficent unit will reduce raw materials waste by $10,000 per year

b. if the current project is accepted, kellogg will be forced to sell one of its existing divisions to satisfy antimonolpy requirements.

c. kelloggg expectes its account recievable to decrease by 50,000 as a result of the project

d. kellog's annual comon stock dividends total 435,000

The factors should kellogg systems inc include in its capital budgeting analysis are a,b and c.

Explanation:

the capital budgeting analysis involves taking decisions relating to the acceptability of a project. these projects are of long-term nature and generally requires a huge capital outflow.

a) there is a reduction in raw material waste  and thus there is a cost saving which will affect the cash flow of the business and should be considered in capital budgeting analysis.

b) the company will have to sell one of its divisions if it accepts the current project and this is an example of cannibalization wherein because of accepting one project, the revenue from one of the existing project of the business is impacted. this will impact the cash flow of the business and should be considered in capital bidgeting analysis.

c) because of the project the accounts receivable will decrease by $50,000. this will impact the cash flow of the business and should be considered in capital budgeting analysis.

d) the amount of dividend is given, the payment of dividend has no impact on the acceptability or non-accepting of the project and this is not to be considered in the capital budgeting analysis.

Therefore, The factors should kellogg systems inc include in its capital budgeting analysis are a,b and c.

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answer; ///i believe the correct   answer is (e) transformational;