What's New * | EB Homework Help-Q8AfromO Question7-Ch1ProblemAss| + - CG 23 ezto.mheducation.com/ext/map/index.html?_con=conexternal_browser=O08launchUrl=https%253A%252F%252Fconnect.mheducation.com%252Fconnect... vr mm) Ca Ch1 Problem Assignment e Saved Help SaveExit Submit 5 8.33 points eBook Print References ca 2 Type here to search . ~ Problem 01-15 (algo) Approximately 14 million Americans are addicted to drugs and alcohol. The federal government estimates that these addicts cost the US. economy $300 billion in medical expenses and lost productivity. Despite the enormous potential market, many biotech companies have shied away from funding research and development (RD) initiatives to find a cure for drug and alcohol addiction. Your firm Drug Abuse Sciences (DAS) is a notable exception. It has spent $240 million to date working on a cure, but is now at a crossroads. It can either abandon its program or invest another $65 million today. Unfortunately, the firm's opportunity cost of funds is 6 percent and it will take another five years before final approval from the Federal Drug Administration is achieved and the product is actually sold. Expected (year-end) profits from selling the drug are presented in the accompanying table. What is the net present value of the project? Instructions: Enter your response rounded to the nearest penny (two decimal places). Use a negative sign (-) where appropriate. $ Should DAS continue with its plan to bring the drug to market, or should it abandon the project? Abandon v [Year 1 | Year 2 | vear 3 [ Year4 [ vears [| vear6 [Year 7 [| vear'3 [Year | $ 13,000,000 $ 14,200,000 | 16,800,000 | $ 19,400,000 | $ 23,500,000 g 3