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Which of the following should be treated as incremental cash flows when computing the NPV of an investment? a. The reduction in the sales of
Which of the following should be treated as incremental cash flows when computing the NPV of an investment?
a. | The reduction in the sales of the companys other products. | (Click to select) Yes No |
b. | The expenditure on plant and equipment. | (Click to select) Yes No |
c. | The cost of research and development undertaken in connection with the product during the past three years. | (Click to select) Yes No |
d. | The annual CCA expense. | (Click to select) No Yes |
e. | Dividend payments. | (Click to select) Yes No |
f. | The resale value of plant and equipment at the end of the projects life. | (Click to select) Yes No |
g. | Salary and medical costs for production employees on leave. | (Click to select) Yes No |
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