You are setting up cash flows to do capital budgeting for a new project to manufacture smart dog leashes. You have been toying with this idea for a couple of years. Which of the following cash flow should be included in your analysis?

1, The original buying price of the genuine leather used as decorative piece on these synthetic leashes. The leather used for this piece will come from the scrap leftover pieces of leather from your shoe factory that are currently thrown in trash.

2, The cost to run trials on actual dogs two years ago to see if they liked wearing smart leashes.

3, The cost of housing and feeding your dog who is the main inspiration for this product.

4, The cost of microchip embedded in the leash.