Which of the Following Should Be Treated as Incremental Cash

question 52

Multiple Choice

Which of the following should be treated as incremental cash flows when deciding whether to go ahead with a new pharmaceutical drug?

• A)The cost of research and development undertaken for developing the new drug in the past five years
• B)The annual accounting depreciation charge on new asset purchases
• C)The decrease in taxes resulting from capital cost allowance on new asset purchases
• D)None of the above