You are advising Peter who is attempting to decide whether or not to drop one of the college courses he is currently enrolled in. If he drops the course, he will forfeit half of the money spent on tuition. If he stays in the class, he will have to give up his part-time job. His textbook is being replaced by a new edition, so is worthless at this time. Which of the following conclusions is consistent with capital budgeting principles? I. Remaining in the class incurs an opportunity cost. II. The entire tuition is irrelevant because it is a sunk cost. III. The cost of the book is a sunk cost.