Pharma Dev develops and markets new technological products to be used in health care. The development of a new product operates as follows. When a new technology meets the requisite market potential, a new patent is filed. Patents are granted for a period of 12 years starting from the date of issue. Once the patent is filed, the new technology is developed at one of its three independent development centers, and is then launched to the market. Each product is developed at only one center, and each center can only develop a single patented technology at a time. On average, Pharma Dev files a new patent every 5 months (with standard deviation of 5 months). The average development process lasts 12 months (with standard deviation of 24 months).

Question 5 options:

Market Life: How many years of patent life are left for an average product launched to the market? _____ years. (Keep 2 decimal places.)

Question 8 options:

After a product is launched to the market, it generates a profit of US$40 million per year of patent life. After the patent expires, the product generates no profit. When the cost of leasing an office is less than ____ million dollar per year, it makes sense to lease a new office.