The FDA will grant a patent for 10 years. After that, competitors may copy the drug. Suppose

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The FDA will grant a patent for 10 years. After that, competitors may copy the drug.

Suppose the drug generates $200 million in perpetuity. 6% Discount rate. What is the present value of these cash flows?

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Introduction to Corporate Finance What Companies Do

ISBN: 978-1111222284

3rd edition

Authors: John Graham, Scott Smart

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Posted Date: Mar 02, 2023 01:59 AM

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The FDA will grant a patent for 10 years. After that, competitors may copy the drug. Suppose

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To calculate the present value of the cash flows generated by the drug we can use the formula for th... View the full answer

Introduction to Corporate Finance What Companies Do

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