Which of the following factors should Chrome Manufacturing include in its capital budgeting analysis? Check all that apply.
- Chrome’s replacement of an inefficient machine with a new, more efficient unit will reduce raw materials waste by $10,000 per year.
- If the current project is accepted, sales in another of Chrome’s divisions for a competing product will decline.
- Chrome expects its accounts receivable to increase by $70,000 as a result of the project.
- Chrome’s annual interest expense is $3 million, which is partly due to debt raised for this project.