Question: Create a one-way data table in the Acron model to see how the NPV varies with discount rate, which is allowed to vary from 8%
Create a one-way data table in the Acron model to see how the NPV varies with discount rate, which is allowed to vary from 8% to 18% in increments of 0.5%. Explain intuitively why the results go in the direction they go—that is, the NPV decreases as the discount rate increases. Should Acron pursue the drug for all of these discount rates?
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Model Calculating NPV at Acron Inputs Development cost Gross margin year 1 Peak year ... View full answer
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