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1. If the manufacturer plans on using debt to finance the project, should the estimated project cash flows be changed to reflect these interest charges? Why or why not? 2. If the manufacturer spent $200,000 studying golf clubs last year, should that cost be taken into account with this analysis? Why or why not? 3. If the manufacturer could rent out the factory that is storing the golf club machinery for $80,000 a year, should that be taken into account with this analysis? Why or why not? 4. If this golf club manufacturing venture is going to take away profitable sales from the company's main business of manufacturing refrigerators, should that be taken into account in the analysis? Why or why not?
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