Waxo plc has developed a new wonder earache drug. The management is currently putting together an investment proposal to produce and sell the drug, but is not sure whether to include the following:

1 The original cost of developing the drug.

2 Production of the new product will have an adverse effect on the sale of related products in another division of Waxo.

3 Instead of producing the drug internally, the patent could be sold for £10 million.

How would you advise Waxo on the relevant costs?