When evaluating a new project, firms should include in the projected cash flows all of the following EXCEPT:
a. Previous expenditures associated with a market test to determine the feasibility of the project, provided those costs have been expensed for tax purposes.
b. The value of a building owned by the firm that will be used for this project.
c. The salvage value of assets used for the project that will be recovered at the end of the project's life.
d. A decline in the sales of an existing product, provided that decline is directly attributable to this project.
e. Changes in net operating working capital attributable to the project.

When evaluating a new project, firms should include in the projected cash flows all of the following EXCEPT Previous expenditures associated with a market test to determine the feasibility of the project, provided those costs have been expenses for tax purposes.

Explanation:

A projected cash flow statement is utilized to assess money inflows and surges to prevent. When, how much, and for to what extent money shortfalls or surpluses will exist for a ranch business during an up and coming time.

That information, therefore, will be used to legitimize credit demands, decide reimbursement calendars, and plan for transient ventures. This production centers around getting ready and utilizing an anticipated income explanation in dealing with the ranch business.