Question: 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 .

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 $300,000 that was spent to rehabilitate the plant be included in the analysis?Explain.3. Suppose another winemaker had expressed an interest in leasing the wine production site for$30,000 a year. If this were true (in fact it was not), how would that information be incorpo-rated into the analysis? 4. What is Robert Montoyas Year 0 net investment outlay on this project? What is theexpected nonoperating cash flow when the project is terminated at Year 4?(Hint: Use Table1 as a guide.)

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