n Honda develops a new engine the incidental effects might include the following: (0.5 pts) 1) demand for replacement parts 11) profits from the sale of repair services; l) offer modified or improved versions of the new engine for other uses A. l only I and II only I and Ill only I, I1, and II C. D. Answer 3. For the case of an electric car project, the following costs should be treated as incremental costs when deciding whether to go ahead with the project EXCEPT: (0.5 pts) A. B. C. D. the consequent reduction in sales of the company's existing gasoline models (Le., incidental effects) interest payments on debt incurred to finance the project the value of tools that will be transferred to the project from the company's existing plants instead of being sold. the expenditure on new plants and equipment Answer analyzing whether to invest in 4. For the case of an electric car project, which of the following costs or cash flows should be categoried as incremental when the project? (0.5 pts) A. B. The cost of research and development undertaken for developing the electric car during the past three years The annual depreciation charge Tax savings resulting from the depreciation charges Dividend payments D