You discover the engine-oil additive your scientists developed three years ago makes a great men's after-shave once diluted properly using certain chemicals. How should you treat the original $125,000 of R&D expenditures that went into developing the engine-oil additive for your present decision regarding whether or not to begin production of the after-shave?

a. Treat it as a cash outflow three years ago for the current project; that is, find the future value today of the $125,000 spent three years ago.

b. As an opportunity cost if the formula cannot presently be sold to another manufacturer.

c. The full $125,000 should be treated as an initial investment today.

d. As a sunk cost to be ignored since the R&D expenditure has no bearing on today's decision.

e. As a cash inflow since the formula has obviously increased in value over the years.