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Which of the following should be treated as incremental cash flows when deciding whether to...

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Accounting

Which of the following should be treated as incremental cash flows when deciding whether to invest in a new manufacturing plant? The site is already owned by the company, but existing buildings would need to be demolished. (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.)

check all that apply

  • Money already spent on engineering design of the new plant.
  • The initial investment in inventories of raw materials.
  • Future depreciation of the new plant.
  • The cost of a new access road put in last year.
  • A proportion of the cost of leasing the president's jet airplane.
  • Lost earnings on other products due to executive time spent on the new facility.
  • The market value of the site and existing buildings.
  • Demolition costs and site clearance.
  • The reduction in the corporation's tax bill resulting from tax depreciation of the new plant.

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