Which one of the following does not have incremental cash, Ask an Expert

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Which one of the following does NOT have incremental cash flow effects and thus should not be considered in a capital budgeting decision for a new project?

a) a firm has a parcel of land that can be used for a projects new plant site, be sold, or be used for agricultural purposes

b) a new product will generate new sales, but some of those new sales will be from customers who switch from one of the firms current products

c) a firm can produce a new product, and the existence of that product will stimulate the sales of some of the firm's other products

d) if the project is accepted, the company must inititally invest $2 million in working capital. However, these funds will be recovered at the end of the projects life?

e) A firm can produce a new product, and the existence of that product will stimulate sales for the firms competitors.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M995289

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