Which if the following is considered in the calculation of incremental cash flow

Question

Which if the following is considered in the calculation of incremental cash flows? A.   Re-Engineering and installation costs B.   Repayment of principal of new debt it issued C.   Increased divided payments if additional common stock is issued D.   Interest charges associated with raising funds Which if the following is considered in the calculation of incremental cash flows? A.   Re-Engineering and installation costs B.   Repayment of principal of new debt it issued C.   Increased divided payments if additional common stock is issued D.   Interest charges associated with raising funds

Explanation / Answer

All but B because B is just trading one negative cash flow for a positive (assuming the redemption amount is equal to the issuing amount).

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