You are evaluating a project to produce a new mix of juices which enhances the flavor of your existing product. Which of the following expenditures should be included as an incremental (unlevered) free cash flow?

Select one:

a. $140000 headquarter expense that incurred every year regardless of the project.

b. $30000 increase in interest expense during the life of the project.

c. $15000 decrease in dividends during the life of the project.

d. $40000 loss of revenue from the existing products due to the introduction of the new juice flavor.

e. $14000 consulting fees that have been paid to an external marketing consultant to conduct market survey.

Answer rating: 100% (QA)

Option D is the correct answer Incremental project cost is the cost that is undertaken exclusively i... View the full answer