How should the $5,000 spent last year be handled? last year's expenditure is considered as an opportunity cost and does not represent an incremental cash flow. Hence, it should not be included in the analysis. Last year's expenditure is considered as a sunk cost and does not represent an incremental cash flow. Hence, it should not be included in the analysis The cost of research is an incremental cash how and should be included in the analysis. Only the tax effect of the research expenses should be included in the analysis. Last year's expender should be treated as a terminal cash flow and dealt with the end of the project's life. Hence, it should not be included in the initial investment outlay, What is the outlay for outlay for the machine for capital budgeting purposes, that is, what is the Year 0 project cash how' Round your answer to the nearest cent. What are the project's annual cash flows during Yean 1, 2, and 3. Round your answer to the nearest cent Do not round your intermediate calculations Should the machine be purchased