1. You are considering investing in a new project, Project B. Your firm has already invested in one project, Project A. If the cash flows to Project A will increase when you invest in Project B, should you include the entire cash flows to Project A in your valuation of Project B, include the new cash flows to Project A in the valuation of Project B, or exclude any cash flows to Project A in the valuation of Project B? Explain your answer.

2. You have a project that has just ended, and you are trying to determine how best to use the plant/property/equipment that is no longer needed. The plant/property/equipment is fully depreciated. From a finance perspective, when deciding on whether or not you should sell the plant/property/equipment, is it important to consider what you paid for the plant/property/equipment? Why or why not?