Question: can i get help with this three questions please? What is the present value of the following set of cash flows, discounted at 15.3% per


What is the present value of the following set of cash flows, discounted at 15.3% per year? You work for a pharmaceutical company that has developed a new drug. The patent on the drug will last 17 years. You expect that the drug's profits will be $3 milion in 5 first year and that this amount will grow at a rate of 2% per year for the next 17 years. Once the patent expires, othar pharmaceutical companies will be ablia to procuce the same drug and competition will likely drive profits to zero. What is the present value of the new drug if the interest rate in 10% per yoar? The present value of the new drug is $ million. (Round to threo decimal places.) You work for a pharmaceutical company that has developed a new drug. The patent on the drug will inst 17 years. You expect that the drug's profts will bo $2 milison in ts first year and that this amount will grow at a rate of 5% per year for the next 17 years. Once the patent expires, other pharmaceutical consanies will be abin to produce the same drug and competition will likely drive profits to zero. What is the present value of the new drug if the interest rate is 10% per year? The present value of the now drug is $ milition. (Round to three decimal places.)
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