Question: Question 2 (1 point) YNB Inc makes specialty headgear. Their R&D department has developed a new hat with no brim. Sales of the hat with

Question 2 (1 point) YNB Inc makes specialty headgear. Their R&D department has developed a new hat with no brim. Sales of the hat with no brim are adding significantly to income and analysts believe that R&D should be capitalized. In the current year R&D is 10 million. Last year it was $9 million; 2 years ago it was $8 million; and it was $7 million 3 years ago. YNB uses straight line depreciation and the amortizable life of R&D is 2 years for this industry. The pretax cost of debt is 5.5%. What is the value of the research asset at YNB? $21.68 million $10 million $18.67 million $18.5 million $14.5 million

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