4. (Identifying incremental cash flows) Last week, your firm bought a fleet of trucks for $200,000 to begin a delivery service business. Today, someone came up with the idea to use the trucks to sell ice cream to suburban children door to door. Converting the trucks would cost $75,000. You have been asked to work on this capital budgeting project.

a. What is the role of the $200,000 in your analysis?

b. What is the role of the $75,000 in your analysis?

c. What other information would you need to know about the trucks before making this decision?