COMPANY X, A CANADIAN MANUFACTURER OF CHAIRS, IS CURRENTLY EXPORTING $100,000 WORTH OF CHAIRS TO THE UNITED STATES. THE FIRM IS CONSIDERING OPENING A PRODUCTION FACILITY IN THE UNITED STATES THAT WOULD PRODUCE ENOUGH CHAIRS FOR THE ENTIRE US MARKET AND IS PREDICTING TOTAL SALES IN THE UNITED STATES TO BE $500,000. WHEN ANALYZING THE PROJECT, COMPANY X SHOULD:

Select one:

a. IGNORE EXPORTS OF $100,000 SINCE THEY ARE NOT AN INCREMENTAL CASH FLOW FROM THE PROJECT

b. IGNORE THE EXPORTS OF $100,000 SINCE THEY ARE NOT PART OF THE PROJECT

c. INCLUDE $100,000 AS LOST EXPORT SALES IN THE CAPITAL BUDGET

d. NONE OF THESE CHOICES