In the estimation of incremental cash flows for a new project, several costs and issues are considered. a) In reference to the lecture materials for cash flow estimation, list the seven important issues to be kept track of in estimating incremental cash flows for expansion, replacement, or new capital projects. [No explanation is required for this part.] (2 marks) Click here to enter text. b) In reference to the list of important issues in part

(a) above, specify the type of issue/cost that best describes the following scenario. [No explanation is required for this part.] (1 mark) Scenario A company that manufactures and sells washing machines and dryers is planning to adopt a new project that will produce a new washer-dryer machine that incorporates both washing and drying features in one machine. The companys financial manager estimates that if this new project is adopted, the sales of the existing washing machines and dryers will drop by a total of $2 million. Click here to enter text. c) In reference to the cost in the part

(b) Scenario, should this cost be included in the incremental cash flows? Why or why not? [Word limit: 80 words. Answers beyond word limit will not be marked] (2 marks)