Question: Bullets Format: Johnson & Johnson is evaluating its investment in pharmaceutical research projects. The company's research projects include: Oncology Research: Initial investment of $20

  1. Bullets Format: Johnson & Johnson is evaluating its investment in pharmaceutical research projects. The company's research projects include:
  • Oncology Research: Initial investment of $20 million, expected annual cash flows of $5 million for ten years.
  • Infectious Disease Research: Initial investment of $15 million, expected annual cash flows of $4 million for eight years.
  • Neurology Research: Initial investment of $25 million, expected annual cash flows of $6 million for twelve years.

Calculate the net present value (NPV) for each research project using a discount rate of 10%.

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