Which one of the following cash flows is not relevant and incremental (i.e. should not...
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Finance
Which one of the following cash flows is not relevant and incremental (i.e. should not be used) in the calculation of an investment projects Net Present Value and IRR?
A) The increase in interest expense due to issuing debt to finance the project.
B) The depreciation tax shield.
C) The reduction in inventory associated with cannibalization of existing project sales.
D) The increase in sales of other products a company sells resulting from the launch
E) The reduction in sales price that will most likely be required to sell inventory that has aged.
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