Of the following choices, which one is an example of erosion and should be included in a capital project analysis?

Of the following choices, which one is an example of erosion and should be included in a capital project analysis?

The expected decline in sales as the market for a product becomes saturated.

The sudden loss of sales due to a major employer in your community implementing massive layoffs.

The reduction in sales that occurs when a competitor introduces a new product.

The reduction in sales price that will most likely be required to sell inventory that has aged.

The anticipated loss of current sales when a new product is launched.