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The road to commercialization, page-178

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    Well....R&D is a sunk cost as well as the capital outlay for the manufacturing process correct? In that light the same principle applies to your car. The sunk cost is the purchase of that car but the revenue derived from the use of that car justifies the sunk cost. The sunk cost should not form a rationale decision to walk away, only the prospective cost should determine that rationale. At least that's my understanding but happy for alternate opinion.
 
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