b. The company ypent and expensed $1$,000 on research related to the project last year. Would thes change vour ansere? frplan. 1. No, last vear's expendium is coosidered a sunk cost and does not represent an incremental cash flow. Hence, it should not be included in the analysis. 11. Yes, the cost of research is an incremental cash fiow and should be included in the analyes. III. Yes, but only the tax eflect of the research expenses should be included in the analyses. imestrment eutloy. V. No, lest year's expenditure is considered an opportuniry cont and does not ispresent an uncremental cash flow. Hence, it should not be included in the anulyis. fact alfect your answer? ogninst the progect as o cont: cherond aganst the project in a cost V. The potental saie of the bubling represents a real opton and therefore shoudd not be charged against the project