QUESTION 31

Lester's Dairy currently gathers and processes cow's milk for distribution to retail outlets. Lester's is considering processing goat's milk as well. Which one of the following is most apt to be an incremental cash flow related to the goat milk project? a. processing the goat's milk in the same building as the cow's milk b. utilizing the same pasteurizing equipment to process both kinds of milk c. purchasing additional milk jugs to handle the increased volume of milk d. researched the market last month to ascertain if goat milk sales might be profitable before deciding to proceed. e. reducing the projected interest expense by assuming the proceeds of the goat milk sales will reduce the outstanding debt