Home Building Supply, a retailer in the home improvement industry, currently operates seven retail outlets. Management is contemplating building an eighth store across town from its most successful retail outlet. The company already owns the land for this new store, which currently has an abandoned warehouse located on it. The warehouse has no further use for the firm, nor can it be sold or rented. Last month, the marketing department spent $20,000 on market research to determine the extent of customer demand for the new store. New Building Supply must decide whether to build and open the new store. Which of the following should be treated as incremental cash flows when deciding whether to invest in this expansion?

Group of answer choices

The reduction in the firms tax bill resulting from depreciation of the new investment.

A proportion of the cost of heating and electricity of the other seven outlet stores.

The $20,000 (after-tax) for marketing research.

The cost of a new access road put in last year.

The cost of the land where the store will be located. The cost refers to the purchasing price of the land two years ago, adjusted for inflation.