Answer: The correct answer is "d. A firm has spent $2 million on research and development associated with a new product. These costs have been expensed for tax purposes, and they cannot be recovered regardless of whether the new project is accepted or rejected."
Explanation: "d. A firm has spent $2 million on research and development associated with a new product. These costs have been expensed for tax purposes, and they cannot be recovered regardless of whether the new project is accepted or rejected." should NOT be included in the capital budgeting analysis for a new product becaise tjos $2 million represent sunk costs and are not relevant.