Question: A PRO assessment was performed on the four identified risks. For each of the risks the estimated cost of mitigating the risk (investment) was determined;

A PRO assessment was performed on the four identified risks. For each of the risks the estimated cost of mitigating the risk (investment) was determined; the enterprise net present value (NPV) protected was calculated given the investment was made; and, the investment productivity (a.k.a return on investment) for each investment was calculated. The following table summarizes this information.

Risk Investment $ (Millions) NPV $ (Millions) Investment Productivity
Unreported Adverse Effects 2 120 55.70
FDA Hold for Adverse Effects 15 335 18.65
Delay in Clinical Trial Enrollment 4 550 128.50
Rewrite FDA Submission 3 88 25.10
  1. If the top three most productive investments were approved for implementation, what would be the total investment and how much enterprise value would be protected as measured in NPV?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!