Which of the following are relevant cash flows in the evaluation of a proposal to produce a new product?

1. Decrease in the cash flows of a substitute product.

2. Salvage value of the new machine at the end of its useful life.

3. Cost to develop a product prototype last year.

4. Increase in net working capital at the beginning of the projects life.

5. The cost of a new machine required to produce this product.

6. Alternative of leasing an existing building that will be used for manufacturing this product.