The money spent to obtain a patent on the new product design would normally be included in the final cash flow of a project that entailed the development and sale of a new product.

Question

Quizplus · Accepted Answer

The money spent to obtain a patent on a new product design is considered a sunk cost, which is incurred regardless of the decision on the project and thus not included in the final cash flow analysis of a specific project.

The Money Spent to Obtain a Patent on the New