Question 21 3 pts Your firm is considering conducting a new project. The land on which the new factory for the project must be constructed is currently being rented out to a tenant who pays your firm $100,000 in annual rent for the space. The tenant will find a new landlord if your firm conducts the project. If the appropriate tax rate is 25%, then which of the following most accurately describes how you, as an analyst, will consider the land usage in regard to the proposed new project? Since the firm will no longer be able to recognize the rental income, we should subtract $75,000 in projected cash flow from future years' estimates after factoring in tax effects. Since the firm will no longer be able to recognize the rental income, we should subtract $100,000 in projected cash flow from future years' estimates since this is the rent your firm was charging the tenant. Since the rental income that the tenant pays will be less than the cash flows we project will be generated from the new project we will use the raw cash flow projections of the project, only, when calculating cash flow estimates. Since the rental income that the tenant pays the firm every year is a sunk cost we should ignore it when considering the cash flow implications of the new project