Which of the following statements is correct?
A) Incremental net operating profits after-tax should include sunk costs associated with a project.
B) Incremental net operating profits after-tax should include the effects of financing costs associated with a project.
C) Incremental net operating profits after-tax should exclude the effects of depreciation costs associated with a project.
D) Incremental net operating profits after-tax should exclude the effects of financing costs associated with a project.
Answer: D
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