Which of the following should be considered when a company estimates the cash flows used to analyze a proposed project?

• The new project is expected to reduce sales of one of the company's existing products by 5%.
• Since the firm's director of capital budgeting spent some of her time last year to evaluate the new project, a portion of her salary for that year should be charged to the project's initial cost.
• The company has spent and expensed $1 million on R&D associated with the new project.
• The company spent and expensed $10 million on a marketing study before its current analysis regarding whether to accept or reject the project.
• The firm would borrow all the money used to finance the new project, and the interest on this debt would be $1.5 million per year.