Which of the Following Cash Flows Should Not Be Included

Multiple Choice

Which of the following cash flows should not be included as incremental costs or revenues when evaluating capital projects?

A) A new security system will reduce shoplifting losses by $50,000 per year.
B) Thirty percent of the sales of a new product will result from customers switching from the previous version of the product.
C) Interest on construction loans will increase interest expense by $225,000 per year.
D) The project will occupy space which is currently being rented to another business for $3,000 per month.