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Which of the following statements about incremental cash flows is correct? Multiple Choice Prorated ovethead expenses should alwoys be included as incremental cash flows. Interest and other financing related expenses are excluded when determining a project's net income. Many projects use a resource that the company already owns because there is no cost to using such resources. The correct tax rate that should be used to determine the incremental tax linbility in capital budgeting is the overage tax rate of the firm. Incremental cash flows are defined as the cash flows to the firm with the project plus the cash flows to the firm without the project