Business, 22.07.2020 19:01 natfloresm13
You work for a pharmaceutical company that has developed a new drug. The patent on the drug will last 1717 years. You expect that the drug's profits will be $ 5$5 million in its first year and that this amount will grow at a rate of 2 %2% per year for the next 1717 years. Once the patent expires, other pharmaceutical companies will be able to produce the same drug and competition will likely drive profits to zero. What is the present value of the new drug if the interest rate is 10 %10% per year?
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You work for a pharmaceutical company that has developed a new drug. The patent on the drug will las...
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