Question: What is the minimum and maximum value for NPV For the Moore Pharmaceuticals model, suppose that analysts have made the following assumptions: R&D costs: Triangular(S500,

 What is the minimum and maximum value for NPV For the

Moore Pharmaceuticals model, suppose that analysts have made the following assumptions: R&D

What is the minimum and maximum value for NPV

For the Moore Pharmaceuticals model, suppose that analysts have made the following assumptions: R&D costs: Triangular(S500, $700, $800) in millions of dollars Clinical trials costs: Triangular($135, $150, $160) in millions of dollars Market size: Normal(2000000, 250000) Market share in year 1: Uniform(6%, 10%) All other data are considered constant. Develop and run a Monte Carlo simulationmodel to predict the net present value and cumulative net profit for each year.Summarize your results in a short memo to the R&D director. For the Moore Pharmaceuticals model, suppose that analysts have made the following assumptions: R&D costs: Triangular(S500, $700, $800) in millions of dollars Clinical trials costs: Triangular($135, $150, $160) in millions of dollars Market size: Normal(2000000, 250000) Market share in year 1: Uniform(6%, 10%) All other data are considered constant. Develop and run a Monte Carlo simulationmodel to predict the net present value and cumulative net profit for each year.Summarize your results in a short memo to the R&D director

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!