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Briefly Explain Why Each of the Following Should or Should

Question 102

Essay

Briefly explain why each of the following should or should not be considered in forecasting incremental cash flows from a project:
a. the cost of building a prototype of a new product to see if it was feasible.
b. market research suggests that after buying a company's "smart phone" customers will begin to buy more of the same company's notebook computers.
c. a company decides to use existing space for storage. The company could have rented the space to another business for $2,500 a month.

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a. The cost of building the prototype is...

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