at the time of purchase. The machine wodid be wold after 3 pears for $62,000. The machine would require a $7,500 ma bese in net operating workimg caprai finereased inventmin less increasad isst reat investigating the fessiblity of asing the machine. a. Hew should the $4,500 spent last year be handied? 1IT. Last year's expenditure is convidesed a sunk cost and does not represent an incrementat cash flow. Nerce, it shall nut be indeded in the analysis. TV. The cist bleseurch is an incremental essh flow and should be induded in the analysa. V, Only the tax effect of the research expesses should be inclubed in the andysa. What is the inital avestment outiay for the machine for cepcal budgetine purposes atier the 100% benus seprecotion is consulered, that is, what is the Year 0 preject eash Bows Emer your answ as a bostive volue. Round your answer to the nearent dollar. 5 What are the project's annust cash flows furng Years 1, 2 , and 37 Do not round intermediate calculations. found your asswers to the nearest doliar