Which one of the following would not result in incremental cash flows and thus should not be included in the capital budgeting analysis for a new product? a. a firm has a parcel of land that can be used for a new plant site or be sold, rented, or used for agricultural purposes. b. a new product will generate new sales, but some of those new sales will be from customers who switch from one of the firm’s current products. c. a firm must obtain new equipment for the project, and $1 million is required for shipping and installing the new machinery. d. a firm has spent $2 million on research and development associated with a new product. these costs have been expensed for tax purposes, and they cannot be recovered regardless of whether the new project is accepted or rejected. e. a firm can produce a new product, and the existence of that product will stimulate sales of some of the firm’s other products.

2. activities included (and not included) in the calculation ofgdp the gross domestic product (gdp) of the united states is defined as the all in a given period of time. based on this definition, indicate which of the following transactions will be included in (that is, directly increase) the gdp of the united states in 2017. scenario 2017 gdp included excluded calculo, a u. s. electronics company, produces a calculator at a plant in indonesia on march 17, 2017. calculo imports the calculator into the united states on may 21, 2017. awake cafe, a u. s. coffee company, produces a latte at its location in minneapolis on january 9, 2017. it sells the latte to a customer immediately. fastlane, a japanese automobile company, produces a sedan at a plant in indiana on december 12, 2017. a family buys the sedan on december 24. you chop down a cherry tree on your property in california and make a dining room table in 2017. a similar table sells for $800 in a local furniture store. graincorp, a u. s. agricultural company, produces corn syrup at a plant in iowa on september 19, 2017. it sells the corn syrup to crunchy's for use in the production of cereal that will be made in the united states in 2017. (note: focus exclusively on whether production of the corn syrup increases gdp directly, and ignore the effect of production of the cereal on gdp.)