3. What is the initial itvestment outlay after bonus depteciation is considered? Write out yout answer completely, For example, 13 milition should be entered as 13,000,0 Round yout answer to the nearest dollat. Enter your answer as a positive value. 3 b. The company spent and expensed $15,000 on research related to the project last year. Would this charige your answer? Explain. 1. No, last year's expetydture is conisidered a wank cost and does not reptesent an incremental cash flow. Hence, it should not be included in the analysis. 11. Yes, the cost of research is an incremental cash flow and should be included in the analysis. 1II. Yes, but only the tax eflect of the research expenses should be induded in the analysis. IV. No, last year's expenditure should be treated as a terminal cash illow and dealt with at the end of the project's life. Mence, it should not be induded in the initial investreet outloy. V. No, last yeat's expenditure is considered an opportunity cost and does not represent an incremental cash fiow. Hence, it should not be induded in the analysok. c. Suppose the company plans to use a bulking that it owns ta house the project. The bulding could be sold for $4 mallon after taxes and real estate conrivssions. How would that fact alfect your answer? 1. The potential sole of the budding represents an opportunity cost of conducting the project in that butding. Therefore, the possible after rax sale price nuse be charped ajainst the project as a cost. 11. The potential sale of the bulding represervs an-opportunity cost of cenducting the project in that building: Therefore, the possitle becfore tax sale price inust be chatged against the veject as a cost. III. The poternial sale of the tuabding represents an extemality and therefose should not be charged agarat the project. N. The notential cale of the buiding represents in real option and therefore should be charged sgairst the riroject. V. The potemtid sale of the buiding represents a real option and therefore ahituld not be charged againt the brojec