Suppose you now learn that R&D costs for the new product were $30,000, and those costs were incurred expensed for tax purposes last year. How would this affect your estimate of NPV and other profitability The $30,000 R&D costs are sunk costs. Therefore, these costs will have no effect on NPV and other Suppose you now learn that R&D costs for the new product were $30,000, and those costs were incurred expensed for tax purposes last year. How would this affect your estimate of NPV and other profita bility The $30,000 R&D costs are sunk costs. Therefore, these costs will have no effect on NPV and other profitabi measures.