pent $4,500 last year investigating the feasibility of using the machine. a. How should the $4,500 spent last year be handled? I. The cost of research is an incremental cash flow and should be included in the analysis. II. Only the tax effect of the research expenses should be included in the analysis. IV. Last year's expenditure is considered an opportunity cost and does not represent an incremental cash flow. Hence, it should not be included in the analysis. V. Last year's expenditure is considered a sunk cost and does not represent an incremental cash flow. Hence, it should not be included in the analysis. your answer as a positive value. Round your answer to the nearest dollar. $ c. What are the project's annual cash flows during Years 1, 2, and 3? Do not round intermediate calculations. Round your answers to the nearest dollar. Year 1: \$ Year 2: \$ Year 3: \$ d. Should the machine be purchased