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investigating the feasibility of using the machine. a. How should the $4,500 spent last year be handed? 1. Last year's expenciture is consldered as epportunity cost and dees not repreient an incremental cash fow, Hence, it shbuld net be inchided in the analvis. If. Last year's expeneiture is censidered a surk cost and does not represent an incremental cash flow, Hence, it sheuld not be included in the asairsis. III. The cost of research is an incremental cach flow and should be incuded in the analysis. N. Only the tax effect of the research expenias should be included in the analyis. as a nosiative value. Round vour answer to the nearest dolar. $ C. What are the proiect's annual cash flows during Years 1, 2, and 37 Do not round intermediate calculbtions. Round your answers to the nearest doliar. Year 1 is Year 2 is Yeat 3:5 d. Shadld the thachine be purchased? no eflect on revenues, but it shsuld give the frm $39,000 per year in before-tax later costs. The firm's marginal federal-pius-3tate tax rata is 25%. antion th the nearest dolar. 3 Yeer its Vear 2 is Year 2 is: c. If the WACC a 10h, should the spoctrometer be punchased