Homework Clinic
Social Science Clinic => Business => Topic started by: bcretired on Jun 7, 2019
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Pfizer is planning to embark on developing a new medicine for the cure of common cold. If undertaken, the project requires $10 million dollar on R&D, every year for 5 years. The medicine will be marketed in Year 6 and net returns are estimated to be $10 million for the next 5 years at the end of which Pfizer plans to sell the formula to its competitor for $1 million. If corporation requires a ROI of 15%, what is the NPV for the project?
◦ -$16.6 million
◦ -$16.85 million
◦ $16.6 million
◦ $0.123 million
◦ $16.85 million
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-$16.6 million