Author Question: Which factor is NOT relevant when determining incremental cash flows for a new product? (Read 80 times)

xman15. · **on:** Aug 7, 2023

Which factor is NOT relevant when determining incremental cash flows for a new product?

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the cost of a marketing study that was completed last year related to the new product—this research led to the tentative decision to go ahead with the new product, and the cost of the research was expensed for tax purposes last year

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revenues from an existing product that would be lost as a result of customers switching to the new product

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using some of the firm's high-quality factory floor space that is currently unused to produce the proposed new product—this space could be used for other products if it is not used for the project under consideration

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the land the company owns and would use for the new project, if it is accepted, that could be sold to another firm

sadoniam · **Reply #1 on:** Aug 7, 2023

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