An economic analysis is being conducted for a major defense acquisition program. A significant amount of money has already been spent on research and development in prior fiscal years. According to DoD Instruction 7041.03, how should these prior expenditures be treated in the analysis of alternatives?
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A
They should be included as part of the initial investment cost for each alternative.
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B
They should be amortized over the life cycle of the chosen alternative.
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C
They should be treated as sunk costs and excluded from the comparison of alternatives.
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D
They should be subtracted from the total benefits of the preferred alternative.