A Pharmaceutical Company Has Discovered a New Drug That Treats

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?

A) 0 percent of the R&D costs.
B) $300,000 of the R&D costs.
C) $1.65 million 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.