A Company Spends $20 Million Researching Whether It Is Possible

Multiple Choice

A company spends $20 million researching whether it is possible to create a durable plastic from the process waste from feedstock preparation.How should the $20 million best be considered?

A) as a sunk cost
B) as an opportunity cost
C) as a fixed overhead expense
D) as a capital cost
E) as a project externality