Which One of the Following Would NOT Result in Incremental

question 28

Multiple Choice

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?

• A) A new product will generate new sales, but some of those new sales will be from customers who switch from one of the firm's current products.
• B) A firm must obtain new equipment for the project, and $1 million is required for shipping and installing the new machinery.
• C) A firm has spent $2 million on R&D associated with a new product.These costs have been expensed for tax purposes, and they cannot be recovered regardless of whether the new project is accepted or rejected.
• D) A firm can produce a new product, and the existence of that product will stimulate sales of some of the firm's other products.
• E) A firm has a parcel of land that can be used for a new plant site or be sold, rented, or used for agricultural purposes.

Recognize the importance of the delivery style, including the use of pauses, volume, and inflection for emphasis and clarity.

Appreciate the value of an attention-gaining opening and a strong conclusion in presentations.

Understand the importance of collaborative planning in presentations involving multiple speakers.

Recognize the role of humor and variety in volume for maintaining audience interest.

---

Definitions:

Coronary Heart Disease

A condition characterized by reduced blood flow to the heart muscle due to the build-up of plaque in the coronary arteries, leading to heart attacks and other heart complications.

Biopsychosocial Approach

Approach to psychopathology that seeks to integrate biological, psychological, and social factors in understanding and treating psychopathology.

Physical Health

The state of one's body, including fitness level, absence of disease, and overall physical condition.

Depression

A psychological disorder defined by a continuous state of sadness or a disinterest in activities, leading to considerable dysfunction in everyday functioning.