Which of the following statements is generally true?

1. EBIT from the income statement is a natural starting point for defining cash flows as each input to EBIT is part of the project managers decision set.
2. Net Income from the Income Statement is a natural starting point for defining cash flows as each input to Net Income is part of the project managers decision set.
3. The proposed launch of a new product line, would typically have consequences for revenues, operating expenses, but also could involve investment in long-term assets and net working capital.