$$\begin{array}{lll}& \text{ Depreciation expense }& \text{ Salvage value }\\ \text{ A) }& \text{ Include }& \text{ Include }\\ \text{ B) }& \text{ Include }& \text{ Exclude }\\ \text{ C) }& \text{ Exclude }& \text{ Include }\\ \text{ D) }& \text{ Exclude }& \text{ Exclude }\end{array}$$

A) Choice A.
B) Choice B.
C) Choice C.
D) Choice D.

Incremental Cost Approach

A decision-making process that focuses on the changes in total cost resulting from a specific business decision, considering only the relevant costs and benefits that differ between alternatives.

Operating Costs

Expenses associated with running a business's core activities on a day-to-day basis, such as salaries, rent, and utilities.

Discount Rate

The discount rate that is employed during discounted cash flow evaluation to ascertain the present valuation of future expected cash flows.