Use the Table Below to Answer the Following Question(s) -Calculate Cumulative Net Profit at the Fourth Year
Use the table below to answer the following question(s) .
Dresden Pharmaceuticals has decided to go ahead and start clinical trials on a potential new drug.The total R&D costs are estimated to reach around $875,000,000 with clinical trials mounting to $145,000,000.The current market size is estimated to be around 3,000,000 and is expected to grow at 4 percent every year.The market share Dresden hopes to capture in the first year is 7 percent, and is projected to grow by 25 percent each year for the next 4 years.A monthly prescription is anticipated to generate revenue of $420 while incurring variable costs of $150.A discount rate of 8 percent is assumed.
-Calculate cumulative net profit at the fourth year.
A) $1,073,538,462
B) $3,868,834,800
C) $1,312,041,240
D) $1,494,838,800
Correct Answer:
Verified
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