Nov Laboratories Limited has been involved in pharmaceuticals research projects for 15 years. The Managing Director has expressed concern that the variability in the level of research and development expenditure has distorted the reported profits for the company over the past 5 years.

The following information is available:

1. Research and development expenditure over the past 5 years has been analyzed as follows: 

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Year ended 31 December Property Plant & Equipment Acquired Research Costs Development Costs 200V 50,000 445,000 125,000 200W 150,000 77,000 150,000 200X 210,000 40,000 215,000