A Local Restaurant Owner Is Considering Expanding into Another Urban

A local restaurant owner is considering expanding into another urban area.The expansion project will be financed through a line of credit with First National Bank.The administrative costs of obtaining the line of credit are $500,and the interest payments are expected to be $1,000 per month.The new restaurant will occupy an existing building that can be rented for $2,500 per month.The incremental cash flows for the new restaurant include

A) $500 administrative costs, $1,000 per month interest payments, $2,500 per month rent.
B) $500 administrative costs, $2,500 per month rent.
C) $1,000 per month interest payments, $2,500 per month rent.
D) $2,500 per month rent.