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A pharmaceutical company has discovered a new drug that treats gastrointestinal disorders. In the ...

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A pharmaceutical company has discovered a new drug that treats gastrointestinal disorders. In the ...

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.

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Corporate Finance

Edition: 5^th

Author: Booth

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fruits Author

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Thanks

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Helped a lot

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Just got PERFECT on my quiz

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