Which one of the following would NOT result in
incremental cash flows and thus should NOT be
included in the capital budgeting analysis for a new product?
Group of answer choices
Revenues from an existing product would be lost as a result of
customers switching to the new product.
Shipping and installation costs associated with a machine that
would be used to produce the new product.
It is learned that land the company owns and would use for the
new project, if it is accepted, could be sold to another firm.
The cost of a study relating to the market for the new product
that was completed last year. The results of this research were
positive, and they led to the tentative decision to go ahead with
the new product. The cost of the research was incurred and expensed
for tax purposes last year.
Using some of the firm's high-quality factory floor space that
is currently unused to produce the proposed new product. This space
could be used for other products if it is not used for the project
under consideration.