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Author Question: Which of the following does NOT have incremental cash flow effects and thus should NOT be considered ... (Read 71 times)

ega16

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Which of the following does NOT have incremental cash flow effects and thus should NOT be considered in capital budgeting decisions?

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.


A firm must obtain new equipment for the project, and $1 million of costs for shipping and installing the new machinery will be required.


A firm can produce a new product, and the existence of that product will stimulate sales of some of the firm’s other products. 


A firm has spent $3 million on R&D associated with a new product. These costs have been expensed for tax purposes, and they cannot be recovered if the new project is rejected.



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Marked as best answer by ega16 on Aug 7, 2023

khammond77

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ega16

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Reply 2 on: Aug 7, 2023
Gracias!


recede

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

 

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