2. Incremental costs - Initial and terminal cash flow Aa Aa Consider the case of Acme Manufacturing: Acme Manufacturing is considering a project that requires an investment in new equipment of $4,200,000, with an additional $210,000 in shipping and installation costs. Acme estimates that its accounts receivable and inventories need to increase by $840,000 to support the new project, some of which is financed by a $336,000 increase in spontaneous liabilities (accounts payable and accruals) The total cost of Acme's new equipment is and consists of the price of the new equipment plus the $4,410,000 $840,000 $4,914,000 In contrast, Acme's initial net investment d