Which One of the Following Would NOT Result in Incremental

question 32

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 firm has a parcel of land that can be used for a new plant site or be sold,rented,or 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 firm's current products.
• C) A firm must obtain new equipment for the project,and $1 million is required for shipping and installing the new machinery.
• D) A firm has spent $2 million on research and development 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.
• E) A firm can produce a new product,and the existence of that product will stimulate sales of some of the firm's other products.

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Definitions:

Genetic Components

Refers to the elements of an individual's genetic makeup that contribute to particular traits or disease risks.

Environmental Factors

External elements that can affect the health or behavior of individuals, including natural and built environments.

Concordance Rate

The probability that two individuals with a shared genetic background will both exhibit a specific trait or disease.

Dizygotic Twins

Twins that are born from two separate eggs fertilized by two different sperm, also known as fraternal twins.