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fruits fruits
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5 months ago
A pharmaceutical company has discovered a new drug that treats gastrointestinal disorders. In the testing phase of this new drug, the company further discovered that the drug is effective against migraine headaches. The R&D costs for the drug were $3 million. When evaluating the capital budgeting decision for the migraine remedy, what portion of the R&D costs for the drug should be attributed to the migraine budget?

▸ 50% of the R&D costs

▸ 0% of the R&D costs

▸ 100% of the R&D costs

▸ It cannot be determined until the drug is further tested. There may be more uses for this drug and further testing is required.
Textbook 
Corporate Finance

Corporate Finance


Edition: 5th
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mnnewmanmnnewman
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5 months ago
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