22. Kelley's Baskets makes handmade baskets and is currently considering making handmade wreaths as well. Which of the following should be considered incremental cash flows of the wreath project? I. hiring additional employees to handle the increased workload should the firm accept the wreath project II. increased basket sales due to new customers attracted by the wreath products III. utilizing an empty storage space owned by the firm to store the wreath products IV. research fees spent on analyzing local market demand for the wreath products A. I and II only B. I, II and III only C. I, II and IV only D. I, II, III and IV 18. Overland purchased $387,950 of fixed assets that are classified as three-year property following MACRS depreciation schedule. The MACRS depreciation rates are 0.3333, 0.4445, 0.1481, and 0.0741 for Years 1 to 4, respectively. What is the amount of the depreciation expense in Year 2? A. $128,747.10 B. $172,443.78 C. $57,455.40 D. $159,929.11 I E. None of the above