while calculating ROCE and Payback do we consider "Market research of $8,000 has already been carried out and has been capitalised." or it's considered as sunk cost
"A project being considered would require a machine costing $80,000. Market research of $8,000 has already been carried out and has been capitalised. The result is that the project is expected to last for six years and produce net cash inflows of $20,000 for each of the first three years, and then $15,000 for each of the last three years. At the end of the project, the machine will be scrapped for $4,000.
Assume that cash flows arise evenly during the year.
Required:
Evaluate the project using:
(i) ROCE;
(ii) ROCE using the average investment approach;
(iii) Payback period."
Per ACCA they have included the market research