P. p. pumpkineater, the renowned agricultural geneticist, has mutated previous varieties of pumpkins and produced two new strains, scaryface and candlebreath. because he has limited marketing funds, he must decide which strain is the most "jack-o-lanternable." having been in the jack-o-lantern business for a long period of time, he has developed the pppjol test to compare different strains. the plot of land available for planting is on the side of a hill with a large number of trees on top and a stream near the bottom. he is quite concerned about the effects of sunlight and water on the growth of the pumpkins. he has 60 seeds of each variety available for testing. design an experiment that will p. p. determine which strain to market.

Shrieves casting company is considering adding a new line to its product mix, and the capital budgeting analysis is being conducted by sidney johnson, a recently graduated mba. the production line would be set up in unused space in the main plant. the machinery’s invoice price would be approximately $200,000, another $10,000 in shipping charges would be required, and it would cost an additional $30,000 to install the equipment. the machinery has an economic life of 4 years, and shrieves has obtained a special tax ruling that places the equipment in the macrs 3-year class. the machinery is expected to have a salvage value of $25,000 after 4 years of use. the new line would generate incremental sales of 1,250 units per year for 4 years at an incremental cost of $100 per unit in the first year, excluding depreciation. each unit can be sold for $200 in the first year. the sales price and cost are both expected to increase by 3% per year due to inflation. further, to handle the new line, the firm’s net working capital would have to increase by an amount equal to 12% of sales revenues. the firm’s tax rate is 40%, and its overall weighted average cost of capital, which is the risk-adjusted cost of capital for an average project (r), is 10%. define “incremental cash flow.” (1) should you subtract interest expense or dividends when calculating project cash flow?