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explain for each of these 6 items whether they should or should not be included in capital budgeting decision, and the sign of these cashflows:
explain for each of these 6 items whether they should or should not be included in capital budgeting decision, and the sign of these cashflows:
- advertising costs
- after tax salvage value of old machine
- increase in interest payments that must be paid on new bank loan
- salaries of admin staff members
- incremental depreciation expense of new machine
- cost savings as a result of purchasing new machine
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