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Energy Ltd is involved in the research and development of a new type of three-finned surfboard. For this R & D it has incurred the

Energy Ltd is involved in the research and development of a new type of three-finned surfboard. For this R & D it has incurred the following expenditure:

  • $50 000 obtaining a general understanding of water-flow dynamics
  • $30 000 on understanding what local surfers expect from a surfboard
  • $90 000 on testing and refining a certain type of fin
  • $190 000 on developing and testing a full prototype of the three-finned board, to be called the 'thruster'.

There is expected to be a very large market for the product, which will generate many millions of dollars in revenue.

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