You discover the engine-oil additive your scientists developed three years ago makes a great men's after-shave once diluted property using certain chemicals. How should you treat the original exist125,000 of research & development (R&D) expenditures from three years ago that went into developing the engine-oil additive for your present decision regarding whether or not to begin production of the after-shave? Treat it as a cash outflow three years ago for the current project: that is, find the future value today of the exist125,000 spent three years ago. The full exist125,000 should be treated as an initial investment today. As a cash inflow since the formula has obviously increased in value over the years. As an opportunity cost if the formula cannot presently be sold to another manufacturer. As a sunk cost since the R&D expenditure has no bearing on today's investment decision