Multiple Choice
XYZ,Inc.is considering adding a product line that would utilise floor space in their manufacturing plant that is currently used for storage.XYZ will need to rent new storage space elsewhere.When calculating free cash flows,XYZ management should:
A) Ignore it because it already owns it.
B) Include the cost of the floor space.
C) Add the cost to revenue as a bonus.
D) Calculate the interest expense on the rented space.
Correct Answer:
Verified
Correct Answer:
Verified
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