Identifying Relevant Cash Flows in Capital Budgeting

In capital budgeting, estimating future cash flows is critical for evaluating the viability of potential investments. When forecasting cash flows, it is essential to consider which types of cash flows are relevant to the analysis. Understanding what constitutes relevant cash flows helps ensure that the investment decision is based on accurate financial projections.

Question: Which of the following represents a relevant cash flow when estimating the cash flows for a new project?