Question
Palouse Mall, a local shopping center, is considering adding a small cinema inside the shopping mall. The cinema will be owned and operated by Palouse
Palouse Mall, a local shopping center, is considering adding a small cinema inside the shopping mall. The cinema will be owned and operated by Palouse Mall. Which of the following should be considered incremental cash flows of the cinema project?
I. increased sales of other stores owned by Palouse Mall due to new customers attracted by the cinema
II. hiring additional employees to operate the cinema
III. research fees spent by Palouse Mall on analyzing local demand for the cinema
IV. utilizing an empty space owned by Palouse Mall to host the cinema
A. II only
B. I and II only
C. II, III and IV only
D. I, II and IV only
E. I, II, III and IV
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