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.

Distinguish between single-issue and multiple-issue negotiations.

Recognize the critical role of strategy and tactics in negotiation.

Understand the challenges in discussing and prioritizing issues.

Comprehend the impact of negotiation strategies on the relationship between parties.

---

Definitions:

Radiolucent

Describes substances that allow the passage of X-rays or other forms of radiation, appearing dark or transparent on a radiographic image.

Radiopaque

Describes materials or substances that appear white or light on radiographic images because they block the passage of x-rays.

Radioactive

Materials or isotopes that emit radiation spontaneously as a result of atomic decay.

Interventional Radiology

A medical specialty that uses imaging techniques such as X-rays and MRIs to guide minimally invasive surgical procedures.