10. A software company has just developed a new software suite. Which of the following cash flows should be treated as incremental when deciding whether to go ahead and produce the software? Why?

A. The research and development costs that were incurred developing the software.

B. The value of land that you would otherwise sell.

C. The consequent increase in the sales of the companys existing software products due to bundling of its

products.

D. The salvage value of the equipment at the end of its planned life.

E. Tax shield associated with the software amortization charge.

F. Marketing expenses for the product.

G. A proportion of expenses for the head office assuming these expenses are independent of whether

software is produced.

(a)A, B, C, D, E

(b)B, D, E, F, G

(c)B, C, D, E, F

(d)A, C, D, E, F