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A company spends $20 million researching whether it is possible to create a durable plastic from the process waste from feedstock preparation. How should the $20 million best be considered?

▸ as a capital cost

▸ as an opportunity cost

▸ as a sunk cost

▸ as a fixed overhead expense
Textbook 
Fundamentals of Corporate Finance
Edition: 2nd
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as a sunk cost
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