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Assume that the R&D department has been working on several types of new biscuits and finally one type of biscuit is chosen for full scale
Assume that the R&D department has been working on several types of new biscuits and finally one type of biscuit is chosen for full scale production. Now, the R&D department has been asked to change the texture of the biscuit coating and develop packaging for test marketing. You are the financial analyst working on a "Discountred Cash Flow" of the NEW BISCUIT PROJECT. Will the costs of these new R&D efforts be included in the CASH FLOW as costs for the Biscuit Project? Explain your answer.
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