include or do not include

Auburn Paper Company is considering the introduction of a new product line. The new product is expected to exist for five years. You are responsible for the analysis of whether or not the firm should make the investment. For each of the five items below, indicate whether you should include the item in your analysis or not include the item in your analysis. [Select) It is expected that some of the items will overlap markets. The marketing department has determined that the introduction of the new product will actually reduce the expected sales of some of the current paper products by approximately $50,000 per year. [Select] To analyze the market for the new product line, Auburn Paper had employed a marketing consultant for the past three years for $80,000 per year, though her contract has expired. [ Select) Some of the new products will be manufactured in a currently vacant facility the firm owns next door to the existing plant. The current estimated market value is $985,000. The facility has zero book value. [Select] The new equipment will be depreciated using MACRS. According to the Internal Revenue Service, the machinery is in the five year asset class. Your colleague in the accounting department reminds you that depreciation itself is not an actual cash flow. [Select) Introduction of the new products will not require hiring additional management. However, because the new products will constitute approximately 1/8 of the firm's total sales, the new product line is responsible for 1/8 of the current managers' salaries