Pharma-Excel is a pharmaceutical company. It is currently studying the feasibility of a research project that...
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Pharma-Excel is a pharmaceutical company. It is currently studying the feasibility of a research project that involves improvement of vitamin C pills. To examine the optimistic, expected, and pessimistic scenarios for this project, it gathered the data shown below. What is the expected annual cost of the vita- min C project? Assume Pharma-Excel's MARR is 15 percent. Note: The lead time is different for each scenario. Research and development costs (at the end of research) Lead time to production (years) Probability Optimistic $75.000 0.15 Expected $240 000 0.5 Pessimistic $500 000 3 0.35 Pharma-Excel is a pharmaceutical company. It is currently studying the feasibility of a research project that involves improvement of vitamin C pills. To examine the optimistic, expected, and pessimistic scenarios for this project, it gathered the data shown below. What is the expected annual cost of the vita- min C project? Assume Pharma-Excel's MARR is 15 percent. Note: The lead time is different for each scenario. Research and development costs (at the end of research) Lead time to production (years) Probability Optimistic $75.000 0.15 Expected $240 000 0.5 Pessimistic $500 000 3 0.35
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Calculate the expected annual cost of the vitamin C project Given Research and development costs Opt... View the full answer
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Research Methods For Business Students
ISBN: 9781292208787
8th Edition
Authors: Mark Saunders, Philip Lewis, Adrian Thornhill
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