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mars03 mars03
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7 months ago
A pharmaceutical company has discovered a new drug that treats gastrointestinal disorders. The R&D costs for the drug were $3 million. In the testing phase of this new drug, the company further discovered that there is a possibility that the drug would be effective against migraine headaches if they invest another 10% in R&D. 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?

▸ $1.65 million of the total R&D costs of $3.3 million

▸ 0% of the total R&D costs of $3.3 million

▸ $300,000 of the R&D costs that are still to be incurred

▸ 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

Corporate Finance


Edition: 5th
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9quatroquatro99quatroquatro9
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7 months ago
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mars03 Author
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7 months ago
this is exactly what I needed
Lourd Jenkins
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Yesterday
I appreciate what you did here, answered it right Smiling Face with Open Mouth
Tim0301
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2 hours ago
Smart ... Thanks!
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