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Which of the following constitutes an example of a cost, which is incremental cash flow, and therefore relevant in an accept/reject decision for capital budgeting?

A) A firm has a land that can be used for a new plant site or, alternatively, can be used to grow wheat for profits.

B) A firm can produce a new cleaning product that will generate new sales.

However, some of the new sales will be from customers who switch from another product the firm currently produces.

C) A firm orders and receives a piece of new equipment, which is shipped across the country and requires $25,000 in installation and set-up costs.

D) Two of the above are examples of incremental cash flows.

E) ALL three of the above are examples of incremental cash flows.

Reference no: EM133109682

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