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A firm has spent $100m on R&D to develop a number of patents. These have not led to commercially successful products for the firm, but

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A firm has spent $100m on R&D to develop a number of patents. These have not led to commercially successful products for the firm, but some competitors have indicated an interest in acquiring the full set of intellectual property from the firm. A new project proposes to make use of some of the patents now. Should the cost/value of the patents be added to the cost of the new project? Select one: A. No. This is a sunk cost as the patents were developed in the past. B. Yes. Since the project will be using the patents, it should account for the use of the patents at their original R&D costs. C. Yes. Since the project will be using the patents, it should account for the use of the patents at the market price for the patents today. D. No. There is no opportunity cost here as the projects use of the patents does not preclude their sale

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