Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. (quantitative question) you work for a pharmaceuti

(Quantitative Question) You work for a pharmaceutical company that has developed a new drug. The...

50.1K

Verified Solution

Question

Finance

image
(Quantitative Question) You work for a pharmaceutical company that has developed a new drug. The patent on the drug will last 13 years. You expect that the drug's profits will be $2 million in its first year and that this amount will grow at a rate of 4,1% per year till the patent expires in 13 years. Once the patent expires other pharmaceutical companies will be able to produce the same drug and competition will likely drive profits to zero. What is the present value in millions of dollars) of the profits from the new drug If the interest rate is 8.6% per year? (Round your answer to two decimal places.) Write the answer both in the space provided and on the empty pages on which you will also show your work (including timelines)

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

3MgCl2(aq) + 2Na3PO4(aq) ------> 6NaCl(aq) + Mg3(PO4)2(s) 1.) If given 29 grams of each reactant, determine...

Chemistry
Q

Explain the process of cortisol signaling. what kind of signaling is it? how does it affect...

Biology
Q

The structures of the cochlea are responsible for ___, whereas the structures of the saccule and...

Medical Sciences
Q

In older adults, a higher level of social support is related to a) a lower probability of...

Psychology
Q

Explain the advantages and disadvantages of “civilianization”?

Psychology
Q

Bran epson printers. Design an Integrated Marketing Communications outline for your brand. Explain your reasons for using...

General Management
Q

Conflict is inevitable. True False Positional bargaining strategies is a negotiation strategy that attempts to satisfy as many interests...

General Management
Q

Part B Bruce Manufacturing Ltd’s post-closing trial balance at 30 June 2019 included the following balances:...

Accounting
Q

The system shown is in vertical plane Mass of L shaped rod is 2m and...

Physics
Q

Required information Skip to question [The following information applies to the questions displayed below.]...

Accounting
Q

Which of the following is NOT an example of 'cash and cash equivalents?' money orders...

Accounting
Q

A-In which of these is these types of mortgages, does one get low or zero...

Accounting