In capital budgeting, should the following be ignored, or rather added or subtracted from the new machine's purchase price when estimating initial cash outflow? When estimating the machine's depreciable basis?
a. The market value of the old machine is $500, the old machine has a remaining useful life, and the investment is a replacement decision.
b. An additional investment in inventory of $2,000 is required.
c. $200 is required to ship the new machine to the plant site.
d. A concrete foundation for the new machine will cost $250.
e. Training of the machine operator will cost $300.