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Concept Question #2 (Incremental Cash Flows): Which of the following should be treated as an incremental cash flow when computing the NPV of an investment?
Concept Question #2 (Incremental Cash Flows): Which of the following should be treated as an incremental cash flow when computing the NPV of an investment? Part a: a reduction in the sales of a company's other products caused by the investment. Part b: an expenditure on plant and equipment that has not yet been made and will be made only if the project is accepted Part c: Costs of research and development undertaken in connection with the product during the past three years. Part d: annual depreciation expense from the investment. Parte: Dividend payments by the firm Part f: The resale value of plant and equipment at the end of the project's life Part g: Salary and medical costs for production personnel who will b employed only if the project is accepted
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