Which cash flows or costs should be taken into account when doing capital budgeting for the project?

a) Cash flows if we do not do the project for year 1 were $2,000 and year 2 were $3,000. If we do project cash flows will be $3,000 and $4,000. So we should consider $3,000 and $4,000 while evaluating the project.

b) Cash flows if we do not do the project for year 1 were $2,000 and year 2 were $3,000. If we do project cash flows will be $3,000 and $4,000. So we should consider $1,000 and $1,000 while evaluating the project.

c) Cash flows if we do not do the project for year 1 were $2,000 and year 2 were $3,000. If we do project cash flows will be $3,000 and $4,000. So we should consider $5,000 and $7,000 while evaluating the project.