Part IV$.$ Principles of Cash Flow Estimation $(2\mathrm{.}5$ points each: $1\mathrm{.}5$ points for part a; $1$ point for part b$)$

$21.$ Suppose you learned that AAA Health could lease its building to another party and earn $$20,000$ per year.

a$.$ Should the fact be reflected in the cash flow estimation of the proposed project? Why?

b$.$ If so$,$ how should you handle the amount in the cash flow estimation of the proposed project? Be specific.

$22.$ Assume that the new drink project would take away profitable sales from A$3$H$\text{'}$s existing apple juice$/$fish oil blended energy drink business.

a$.$ Should the fact be reflected in the cash flow estimation of the proposed project? Why?

b$.$ If so$,$ how should you handle the effect on the existing business in the cash flow estimation of the proposed project? Be specific.

$23.$ Suppose you learned that A $3$ H had spent $$50,000$ to renovate the building last year.

a$.$ Should this cost be reflected in the cash flow estimation of the proposed project?

b$.$ Explain why or why not.