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A Pharmaceutical Company Has Discovered a New Drug That Treats

Question 12

Multiple Choice

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?


A) 0% of the R&D costs.
B) 50 of the R&D costs.
C) 100% of the R&D costs.
D) 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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