Question: You are analyzing a potential capital investment project involvi
You are analyzing a potential capital investment project involving a new product, as you are compiling the relevant data for your analysis; you are informed of an expenditure that occurred during the prior year. The marketing research department of your company conducted an assessment of the demand for this new product. The cost of this research was $100,000 and was part of the company’s expense during the previous year. Is this relevant to your present analysis? Why or why not?
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