Question: Question 4 3 points Save Answer You company is analyzing cash flows in order to conduct a capital budgeting analysis for a new product line.

 Question 4 3 points Save Answer You company is analyzing cash

Question 4 3 points Save Answer You company is analyzing cash flows in order to conduct a capital budgeting analysis for a new product line. The company estimates that sales of the new product will be $200,000 per month. When capital budgeting, is this cash flow relevant? Why? 4 Yes, this cash flow only would occur if the new product line is adopted, therefore is an opportunity cash flow which is relevant. 02 No, this cash flow only would occur if the new product line is adopted, therefore is not an incremental cash flow. 3. No, there are other valuable alternatives that would be given up if this product line is pursued, so it is not a relevant cash flow. 4 Yes, this cash flow only would occur if the new product line is adopted, therefore is an incremental cash flow which is relevant

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