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A drug company has initiated a research project which is intended to develop a new product. Expenditures to date on this particular research total R500

A drug company has initiated a research project which is intended to develop a new product. Expenditures to date on this particular research total R500 000 but it is now estimated that a further R200 000 will need to be spent before the product can be MBA4807 MAY/JUN 2023 EXAMINATION 7 marketed. Over the estimated life of the product the profit potential has a net present value of R350 000. You are required to advise management whether they should continue

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