Question: Orchid Biotech Company is evaluating several different development projects for experimental drugs. Although the cash flows are difficult to forecast, the company has come up
Orchid Biotech Company is evaluating several different development projects for experimental drugs. Although the cash flows are difficult to forecast, the company has come up with the following estimates of the initial capital requirements and NPVs for the projects in Given a wide variety of staffing needs. Ils company has also estimated the number of research scientists required for each development project (all cost values are given in millions of dollars) a. Suppose that Orchid has a total capital budget of $60 million. How should it prioritize these projects? b. Suppose that Orchid currently has 12 research scientists and does not anticipato being able to hire more in the near future. How should Orchid priorites nunin - X Data table 1. Suppose that Tipe profitability Project Number Initial Capital Number of Research NPV (5) (5) Scientists 2 Help me s 15 190 Clear all Check or 15 IV 20 3 250 30 60.2 1 10 10.1 3 4 22.0
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