Question: You work for a pharmaceutical company that has doveloped a new drug. The patent on the drug will last 17 years. You expect that the

You work for a pharmaceutical company that has doveloped a new drug. The patent on the drug will last 17 years. You expect that the crug's profits wil be 54 milion in its frist year and that this amount will grow at a rate of 2% per year for the next 17 years. Once the patent expires, other pharmaceutical comparies will be able to produce the same drug and competion will linty dive profits to zero. What is the prosent value of the new diug if the interest rate is 8% per year? The present value of the new drug is $ milition. (Round to three decimal places.)

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