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1) A firm is considering an investment in a new manufacturing plant. The site already is owned by the company, but existing buildings would need
1) A firm is considering an investment in a new manufacturing plant. The site already is owned by the company, but existing buildings would need to be demolished. Which of the following should be treated as incremental cash flows?
i) The market value of the site
ii) The market value of the existing buildings
iii) Demolition cost and site clearance
iv) The cost of a new access road put in last year
v) Lost cash flow on other projects due to executive time spent on the new facility.
vi) Future depreciation of the new plant
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