Axon expects the approval process will take 7 years to complete. Their projections are as follows:

• Phase 1 will take 2 years, cost $10 million, and have a 60% probability of success.
• Phase 2 will take 2 years, cost $60 million, and have a 50% probability of success.
• Phase 3 and regulatory review will take 3 years, cost $150 million, and have a 70% probability of success.

They assume a discount rate of 30%, 20%, and 15% per year for each of these phases, respectively. Under these assumptions, what is Axon's rNPV? (Note: Your answer should be expressed in units of millions of dollars.)

2486.15 million NPV to start with

total addressable patient population to be 5 million patients. Moreover, the cost of treatment is projected to be $1000 per year, and at that price they will capture 20% of the addressable market. For simplicity, they assume that their market share will stay constant every year for 13 years after product launch, at which time loss of exclusivity will increase competition from generics and drive sales to zero. Under these assumptions, and using a discount rate of 10% per year, what would be the present value of revenues at the moment of commercial launch? Assume the first cash flow occurs 1 year after launch