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For the case of an electric car project, the following costs should be treated as incremental costs in the NPV analysis, EXCEPT: a. Interest payments
For the case of an electric car project, the following costs should be treated as incremental costs in the NPV analysis, EXCEPT:
a. | Interest payments on debt incurred to finance the project | |
b. | The value of machinery that will be transferred to the project from discontinued gasoline model production instead of being sold | |
c. | The expenditure on new plant and equipment | |
d. | The consequent reduction in sales of the company's existing gasoline models |
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