Question: 1. Define the term incremental cash flow. Since the project will be financed in part by debt, should the cash flow statement include interest expenses?

1. Define the term incremental cash flow. Since the project will be financed in part by debt, should the cash flow statement include interest expenses? Explain.

2. Should the $150,000 test marketing cost be included in the analysis? Explain.

3. Suppose the Cranberry Association actually made a firm offer to lease the lite juice production site for $25,000 a year for 20 years. How should that information be incorporated into the analysis?

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