Respuesta :
The initial (t = 0) cash flow for the Ping Kings' Project should account for $300,000 of the expenditure.
Should the costs of research and development be capitalized?
For the majority of businesses, research and development is an investment that will pay off over a number of years in terms of revenue, cash flow, and profit; as a result, it should ideally be capitalized as an asset rather than expensed.
Research and development costs are regarded as sunk costs under U.S. GAAP and should not be capitalized.
Why is R&D a cost rather than a capital expense?
The major reason businesses aren't allowed to capitalize their R&D expenses is because it's impossible to accurately estimate the charges' potential return on investment. Research and development involves a lot of trial and error.
Learn more about sunk costs: https://brainly.com/question/29488541
#SPJ4
