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O. Dalrymple Inc. is considering production of a new product. In evaluating whether to go ahead with the project, which of the following items should
O. Dalrymple Inc. is considering production of a new product. In evaluating whether to go ahead with the project, which of the following items should NOT be explicitly considered when cash flows are estimated? a. The new product will cut into sales of some of the firm's other products. Oh. The company has spent and expensed for tax purposes $3 million on research related to the new product. These funds cannot be recovered, but the research may benefit other projects that might be proposed in the future: O cil the project is accepted, the company musz invest an additional $2 million in het operating working capital (NOWC). However, all these funds will be recovered at the end of the project's life. Oa: The project will utilize some equipment the company currently owns but is not now using. A used equipment dealer has offered to buy the equipment Oe. The company will produce the new product in a vacant building that was used to produce another product until last year. The building could be sold leased to another company, or used in the future to produce another of the firm's products
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