You discover that a glue your company developed ten years ago can be formed into a superbouncy ball if cooked at the right. temperature. How should you treat the original $125,000 of R\&D expenditures that went into developing the glue in your present capital budgeting decision of whether or not to begin production of the balls? Selected answer will be autamatically saved. For heyboard navigation, press upidown arrow keys to select an answer: a As a cash outlow at the beginning of the project b The full $125,000 plus the costs involved in the discovery of the glue's use as a ball should be treated as initial investment. c As a sunk cost since that R\&D expenditure has no bearing on today's decision d As a sunk cost only if the formula cannot presently be sold to another manufacturer e. As a cash inflow since the formula has obviously increased in value over the years Question 32 When we evaluate a project on the basis of its incremental after-tax cash flows, we are employing Selected answer will be automatically saved. For keyboard navigation, press up/down arrow keys to select an answec. a the stand-alone principle the equivalence theorem