Question: QUESTION 13 Use the information below to answer the following question(s). Below is a spreadsheet for Trance Electronics. rance Electronics ata arket size Unit (monthly

QUESTION 13 Use the information below to answer the following question(s). Below is a spreadsheet for Trance Electronics. rance Electronics ata arket size Unit (monthly Rx) revenue Unit (monthly Rx) cost 20,000,000 120.00 50.00 8% scount rate 10 Project costs R&D 750,000,000 100,000,000 12 linical Trials otal Project Costs 15 Model 17Year Market growth factor 4% 4% 4% 19 20 21 arket size arket share arowth rate arket share ales |18% |18% |1% 18% 7% 23 24 25 26 27 28 nnual revenue nnual costs ro Cumulative net profit 29 Suppose that the project manager of Trance Electronics has identified the following uncertain variables in the model and the distributions and parameters that describe them, as follows: Market size: normal with mean of 20,000,000 units and standard deviation of 4,000,000 units. R&D costs: uniform between $600,000,000 and $800,000,000. Clinical trial costs: lognormal with mean of $150,000,000 and standard deviation $30,000,000. Annual market growth factor: triangular with minimum-296, maximum-6%, and most likely-3%. Annual market share growth rate: triangular with minimum 15%, maximum = 25%, and most likely = 20%. The number of trials per simulation is equal to 10,000 at a Sim. Random Seed of 2. Run the simulation and answer the following questions using the Risk Solver Platform. et present value What is the standard deviation obtained from the simulation results of the net present value? [Hint: Choose the approximate value.] $138,134,040 S162,135,408 $182,992,245 $204,868,924 O S QUESTION 13 Use the information below to answer the following question(s). Below is a spreadsheet for Trance Electronics. rance Electronics ata arket size Unit (monthly Rx) revenue Unit (monthly Rx) cost 20,000,000 120.00 50.00 8% scount rate 10 Project costs R&D 750,000,000 100,000,000 12 linical Trials otal Project Costs 15 Model 17Year Market growth factor 4% 4% 4% 19 20 21 arket size arket share arowth rate arket share ales |18% |18% |1% 18% 7% 23 24 25 26 27 28 nnual revenue nnual costs ro Cumulative net profit 29 Suppose that the project manager of Trance Electronics has identified the following uncertain variables in the model and the distributions and parameters that describe them, as follows: Market size: normal with mean of 20,000,000 units and standard deviation of 4,000,000 units. R&D costs: uniform between $600,000,000 and $800,000,000. Clinical trial costs: lognormal with mean of $150,000,000 and standard deviation $30,000,000. Annual market growth factor: triangular with minimum-296, maximum-6%, and most likely-3%. Annual market share growth rate: triangular with minimum 15%, maximum = 25%, and most likely = 20%. The number of trials per simulation is equal to 10,000 at a Sim. Random Seed of 2. Run the simulation and answer the following questions using the Risk Solver Platform. et present value What is the standard deviation obtained from the simulation results of the net present value? [Hint: Choose the approximate value.] $138,134,040 S162,135,408 $182,992,245 $204,868,924 O S
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