Question
Which of the following should be treated as incremental cash flow when a car manufacturing company decides whether to launch a new project on hybrid
Which of the following should be treated as incremental cash flow when a car manufacturing company decides whether to launch a new project on hybrid electric car?
A. The rent paid for the factory that has already been used to assemble the companys existing product (a conventional car that only uses gas)
B. The cost of Research & Development undertaken in the past 10 years
C. The annual depreciation charge
D. The forecasted reduction in sales of the companys existing product (a conventional car that only uses gas) due to the high demand for the new hybrid electric car
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