Question
You are evaluating a project to produce a new mix of juices which enhances the flavour of your existing product. Which of the following expenditures
You are evaluating a project to produce a new mix of juices which enhances the flavour of your existing product. Which of the following expenditures should be included as an incremental (unlevered) free cash flow?
Select one:
a. $140000 headquarter expense that incurred every year regardless of the project.
b. $30000 increase in interest expense during the life of the project.
c. $15000 decrease in dividends during the life of the project.
d. $40000 loss of revenue from the existing products due to the introduction of the new juice flavour.
e. $14000 consulting fees that have been paid to an external marketing consultant to conduct market survey.
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