Huntington Inc. is considering production of a new product. Explain how each of the following should be treated in evaluating whether to go ahead with the project. a. The company will produce the new product in a vacant building that was used to produce another product until last year. The building could be sold or leased to another company.b. During the past one year, the company incurred $3 million in R&D expenses for the product. It has paid $2.5 million of this but the remaining $500,000 is yet to be paid.c. If the project is accepted, the company must invest $2 million in working capital. These funds are expected to be recovered at the end of the project’s economic life.

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