Question $4[14$ points$]$

AereCraft Innovations Inc., a renowned commercial drone manufacturer, is considering the development of a cutting$-$edge product, the WindRider X$2.$ This new model boasts a $30\%$ increase in flight time and a $20\%$ reduction in weight compared to its predecessor, the WindRider X$1.$ To accommodate the production of WindRider X$2,$ AereCraft plans to construct a new factory on an already$-$owned piece of land, which currently houses a warehouse ready for demolition. Additionally, the company has paid $$250,000$ to a consulting firm for a market survey to gauge demand for the WindRider X$2.$ AereCraft Innovations now faces the decision of whether to proceed with the construction of the new factory for the WindRider X$2.$

Examine the following cash flows and decide if they should be included in the incremental cash flows for the proposed WindRider X$2$ project. Indicate 'Yes' or $\text{'}$No$\text{'}$ for each item and explain your decision.

a$)$ The market survey fee paid to the consulting firm.

b$)$ The cost of the land when it was purchased.

c$)$ The current market value of the land if sold.

d$)$ The cost of demolishing the abandoned warehouse and clearing the lot.

e$)$ Construction costs for the new factory.

f$)$ The loss of sales in the existing product, WindRider X$1,$ if customers who previously purchased WindRider X$1$ become customers of WindRider X$2.$

g$)$ Interest expense on the debt borrowed to pay the construction costs.