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Business, 28.11.2019 02:31 Queiao4088

Which one of the following would not result in incremental cash flows and thus should not be included in the capital budgeting analysis for a new product? a. a firm has a parcel of land that can be used for a new plant site or be sold, rented, or used for agricultural purposes. b. a new product will generate new sales, but some of those new sales will be from customers who switch from one of the firm’s current products. c. a firm must obtain new equipment for the project, and $1 million is required for shipping and installing the new machinery. d. a firm has spent $2 million on research and development associated with a new product. these costs have been expensed for tax purposes, and they cannot be recovered regardless of whether the new project is accepted or rejected. e. a firm can produce a new product, and the existence of that product will stimulate sales of some of the firm’s other products.

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