Give me correct answer with explanation.ve cesProblem 01-15 (algo)Approximately 14 million Americans are addicted to drugs and alcohol. The federal government estimates that these addicts cost theU.S. economy $300 billion in medical expenses and lost productivity. Despite the enormous potential market, many biotech companieshave shied away from funding research and development (R&D) initiatives to find a cure for drug and alcohol addiction. Your firm -Drug Abuse Sciences (DAS) is a notable exception. It has spent $260 million to date working on a cure, but is now at a crossroads. Itcan either abandon its program or invest another $70 million today. Unfortunately, the firm's opportunity cost of funds is 5 percent andit will take another five years before final approval from the Federal Drug Administration is achieved and the product is actually sold.Expected (year-end) profits from selling the drug are presented in the accompanying table.What is the net present value of the project?Instructions: Enter your response rounded to the nearest penny (two decimal places). Use a negative sign (-) where appropriate.$Should DAS continue with its plan to bring the drug to market, or should it abandon the project?ContinueYear 1$0Year 2$0Year 3$0Year 4.$0Year S$16,400,000Year 6$18,300,000Year 7$21,300,000Year 8$24,700,000Year 9$27,100,000

Name: Give me correct answer with explanation.ve cesProblem 01-15 (algo)Appr
Uploaded: 2024-03-20T06:50:59.000Z
Channel: Bartleby
Description: Give me correct answer with explanation.ve cesProblem 01-15 (algo)Approximately 14 million Americans are addicted to drugs and alcohol. The federal government estimates that these addicts cost theU.S. economy $300 billion in medical expenses and lost

The net present value combines the present value of projected cash inflow and outflows to determine…

Business

Finance

endy promts from 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? Continue

endy promts from 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? Continue

Business/Professional Ethics Directors/Executives/Acct

8th Edition

ISBN:9781337485913

Author:BROOKS

Publisher:BROOKS

Chapter5: Corporate Ethical Governance & Accountabililty

Section: Chapter Questions

Problem 3.1EC

See similar textbooks

Similar questions

Approximately 14 million Americans are addicted to drugsand alcohol. The Federal government estimates that these addicts cost the U.S. 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 (R&D) initiatives to find a cure for drug and alcohol addiciton. Your firm-Drug Abuse Sciences-is a notable exception. It has spent $165 million to date working on a cure, but is now at a crossroads. It can either abandon its program or invest another $45 million today. Unfortunately, the firm's opportunity cost of funds is 7 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? yr 1 yr 2 yr 3 yr 4 yr 5 yr 6 yr 7 yr 8 yr 9 $0 $0 $0 $0…
Currently, the world economy is facing an unprecedented challenge due to corona-virus pandemic. In Bangladesh, most of the businesses have been severely affected by corona-virus pandemic and possibly the effects of this virus will last throughout this year. Last year, you started a cement manufacturing business and currently evaluating your capital investment decision for another unit. What will be the effect of corona-virus in your existing business? Will be it a good strategy to invest another unit this year? Provide a detailed explanation
(b) Explain one advantage and one disadvantage for CH of having a mission statement. (c) Explain two possible external sources of finance CH could use to continue production of Copper Health (CH) was the market leader in the production of anti-venom* vaccines to treat (CSR) – is to put customers first and profits second in the treatment of snake bites. poisonous snake bites. CH's mission - influenced heavily by corporate social responsibility Despite 100000 deaths worldwide each year from snake bites and 400000 serious injuries, CH recently announced that it will no longer produce anti-venom vaccines. Several large Mexican, Brazilian and Indian pharmaceutical companies have entered the market selling anti-venom 5. Copper Health (CH) vaccines at a much lower price than CH. A spokesperson for CH said: "We will remain a private limited company where corporate Social responsibility (CSR) remains an important driving force for our mission. Our medical research is only financed from retained…
Case Study The coronavirus pandemic drastically reduced the number of people flying in the United States. Because of this, every major airline experienced a drop in stock prices from February 2020 to November 2020. But these drops ranged from 57% for American Airlines to 21% for Southwest Airlines. Why such a difference? Investopedia points out that Southwest has extremely efficient operations, low-cost pricing, and innovative logistics solutions. In addition, they incorporate customer experience and forward planning into their strategy. All of these things helped Southwest to weather the pandemic, and they all require that Southwest maintains careful control over its operations. One of the other things that helped Southwest during the pandemic was their superior service desk performance. They achieved this performance, in part, through measuring key factors in customer service, looking at customer service leaders (benchmarking), and making changes to bring their customer service costs…
Case Analysis:CBA Rural Bank is a rural bank serving the entire Zamboanga Peninsula and just like anybusiness organization it has been significantly affected by the pandemic. It has 13 branches allover ZP and a total of 170 employees as of the latest manpower headcount. Below is itshypothetical manpower data and labor productivity related costs: How has the income been affected because of the pandemic? What could be thereason for its decreasing trend? What do you think was the strategy of the bank in terms of how it managed ithuman resources taking into consideration its manpower data and its salariesexpenses?
Tommy Gunn is a division manager for K-Cern Inc., a small pharmaceutical company. Tommy's division has been working on a new drug that has the potential to revolutionize the treatment of skin cancer. Once the drug is proven to be effective in clinical trials, it will be approved for sale by the government and patented by the company. Because of the potential market for this drug, it is highly likely that the company's revenues and net income will increase significantly when it is approved. Tommy recently saw an internal company memo indicating that the drug passed its final clinical trial and that the company has received government approval to sell the drug. The company will issue a press release announcing this news in the next two days, and this announcement is expected to result in a dramatic increase in the company's stock price. Tommy knows that there is “free money” to be made if he invests in the stock before the announcement is made. However, K-Cern has a strict policy against…
Tommy Gunn is a division manager for K-Cern Inc., a small pharmaceutical company. Tommy's division has been working on a new drug that has the potential to revolutionize the treatment of skin cancer. Once the drug is proven to be effective in clinical trials, it will be approved for sale by the government and patented by the company. Because of the potential market for this drug, it is highly likely that the company's revenues and net income will increase significantly when it is approved. Tommy recently saw an internal company memo indicating that the drug passed its final clinical trial and that the company has received government approval to sell the drug. The company will issue a press release announcing this news in the next two days, and this announcement is expected to result in a dramatic increase in the company's stock price. Tommy knows that there is “free money” to be made if he invests in the stock before the announcement is made. However, K-Cern has a strict policy against…
Following the outbreak of the Novel Coronavirus (COVID 19), CPC a pharmaceutical companyis considering introducing a new vaccine unto the market to help fight the virus. This will requirethe injection of huge capital to the tune of GH¢40,000,000 for the purchase of the equipment forproduction. It will cost CPC an additional GH¢ 5,500,000 to set up the production facility andinstall that equipment for production. Mr. Smart, the CEO of CPC believes that the vaccine couldbe manufactured in a building owned by the firm and located in East Legon. This vacant buildingand the land can be sold for GH¢ 1,500,000 after taxes. CPC will finance the production of the
The economic shock associated with the COVID-19 pandemic is likely to be significantlylarger than anything seen since the financial crisis of 2008/09. The spread of COVID-19has already had a high human cost, and, with public health systems struggling to cope,these costs will continue to grow. The policies put in place by governments to slow thetransmission of COVID-19 have led, in many countries, to massive demand and supplyshock. This has led to significant trade disruptions, drops in commodity prices, and thetightening of financial conditions in many countries. These effects have already led tolarge increases in unemployment and underemployment rates and will continue tothreaten the survival of many firms worldwide (Loayza and Pennings, 2020).Government revenues are projected to fall as a consequence of the pandemic because ofdeclining economic activity. As fiscal space is already limited in many countries, there isa danger that policy responses to the crisis will either be…
Case Analysis: CBA Rural Bank is a rural bank serving the entire Zamboanga Peninsula and just like any business organization it has been significantly affected by the pandemic. It has 13 branches all over ZP and a total of 170 employees as of the latest manpower headcount. Below is its hypothetical manpower data and labor productivity-related costs: With the financial information given above, briefly answer the following How has the income been affected because of the pandemic? What could be the reason for its decreasing trend? What do you think was the strategy of the bank in terms of how it managed its human resources taking into consideration its manpower data and its salaries expenses? What could be the major decisions of the HRD Department in terms of its training in consideration of its decreasing amount of training expense? Build a hypothetical scenario if needed in your justification.
Following the outbreak of the Novel Coronavirus (COVID 19), CPC a pharmaceutical company is considering introducing a new vaccine unto the market to help fight the virus. This will require the injection of huge capital to the tune of GH¢40,000,000 for the purchase of the equipment for production. It will cost CPC an additional GH¢ 5,500,000 to set up the production facility and install that equipment for production. Mr. Smart, the CEO of CPC believes that the vaccine could be manufactured in a building owned by the firm and located in East Legon. This vacant building and the land can be sold for GH¢ 1,500,000 after taxes. CPC will finance the production of the vaccine (including initial working capitalinvestment) by issuing 2000,000 new common stocks at GH¢ 20 per share from its existing shareholders. A total of GH¢ 15,000,000 is expected to be raised from the rights issue. It expects to finance the remaining from the issue of a 5-year bondwith a before-tax yield to…
Following the outbreak of the Novel Coronavirus (COVID 19), CPC a pharmaceutical company is considering introducing a new vaccine unto the market to help fight the virus. This will require the injection of huge capital to the tune of GH¢40,000,000 for the purchase of the equipment for production. It will cost CPC an additional GH¢ 5,500,000 to set up the production facility and install that equipment for production. Mr. Smart, the CEO of CPC believes that the vaccine could be manufactured in a building owned by the firm and located in East Legon. This vacant building and the land can be sold for GH¢ 1,500,000 after taxes. CPC will finance the production of the vaccine (including initial working capital investment) by issuing 2000,000 new common stocks at GH¢ 20 per share from its existing shareholders. A total of GH¢ 15,000,000 is expected to be raised from the rights issue. It expects to finance the remaining from the issue of a 5-year bond with a before-tax yield to maturity (YTM)…