Calculation of incremental after-tax free cash flows

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Reference no: EM131530359

Which of the following items should be included in the calculation of incremental after-tax free cash flows for a project? (YOU CAN SELECT MORE THAN 1)

Money that has already been spent on a marketing survey regardless of whether you do or do not go forward with the project.

An anticipated increase in sales of a related product that is likely to be used along with the product produced by your new project. An example might be cell phone cases and cell phones.

A charge for using surplus warehouse space on your firm's property that is empty and unlikely to be used for any other purpose.

An increase in inventories necessary to support your new project.

The interest expense of a bank loan that is going to be used to finance the increased working capital needed for the project.

After-tax salvage value of an old piece of equipment that is going to be replaced if your firm takes on the new project.

Depreciation for the new equipment that will be purchased if your firm takes on the new project.

A portion of your CEO's salary as he or she will have to devote some of their time to overseeing the implementation of the new project.

Reference no: EM131530359

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