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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
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 NOT be treated as incremental cash flows? a. The market value of the site. b. The market value of the existing buildings. c. Demolition costs and site clearance. d. The cost of a new access road put in last year. e. Lost cash flows on other projects due to executive time spent on the new facility f. A proportion of the cost of leasing the president's jetplane. g. Future depreciation of the new plant h. Reduction of corporate tax bill resulting from depreciation of the new plant i, Initial investment in inventories and raw materials j. Money already spent on engineering design of the plant O b, d, f, g.) O b, d, f, g O none of the other choices are entirely correct O b,f, h O d, f, g
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