Lake City Plastics currently produces plastic plates and silverware. The company is considering expanding its product offerings to include plastic serving trays. All of the following should be considered as relevant free cash flows for this project, with the exception of:

a.

any change in the expected sales of plates and silverware gained or lost from offering trays.

b.

interest expenses on the loan used to finance the expansion.

c.

the cost of additional utilities required to operate the serving tray production line.

d.

utilizing a machine that the rest of the company no longer uses but can sell in the market for $10,000.

e.

the additional plastic raw materials that would be required.