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: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Siven the graphs of f x and g x below find the composition of functions...

Calculus
Q

Which of the following elements is a brittle solid and poor conductor of heat and electricity? A....

Chemistry
Q

What are the two key ways that marketing creates value? How can marketing research facilitate marketing’s...

General Management
Q

4 y you 44 y 0 1 y 0 0 y 0 2 e

Geometry
Q

3 4 cm ekil 3 ekil 1 ekil 2 Kenar uzunlu u 5a cm olan...

Basic Math
Q

Riverbed Corporation makes two products, footballs and baseballs. Additional information follows: ...

Accounting
Q

Because people prepare budgets, budget figures are often biased. Which of the following is true?...

Accounting
Q

Case (Algo) [LO4-2, LO4-3, LO4-4] Coffee Bean, Incorporated (CBI), is a processor and distributor of...

Accounting
Q

This is similar to Worksheet 2, but now you have randomizing criteria for your conditions,...

Accounting
Q

Skysong Leasing Company signs a lease agreement on January 1, 2020, to lease electronic equipment...

Accounting
Q

a standard unqualified auditor's report for a Us public company contains 3 sections. list and...

Accounting
Q

Use the glossary to locate the definition of materiality. What is the definition? What authority...

Accounting