You work for a pharmaceutical company that has developed a new drug. The patent on the drug will last 15 years. You expect that the drug's profits will be $3 million in its first year and that this amount will grow at a rate of 2% per year for the next 15 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 7% per year? The present value of the new drug is $ million. (Round to three decimal places.)

Brewster's is considering a project with a life of 5 years, an initial cost of $150,000, and a discount rate of 10 percent. The firm expects to sell 2,400 units a year at a cash flow per unit of $25. The firm will have the option to abandon this project after three years at which time it could sell the project for $40,000. At what level of sales should the firm be willing to abandon this project at the end of the third year?Answer in Excel Please

You work for a pharmaceutical company that has developed a new drug. The patent on the drug will last 19 years. You expect that the drug's profits will be $4 million in its first year and that this amount will grow at a rate of 3 * 0/o per year for the next 19 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 12% per year?   The present value of the new drug is $ (enter your response here) million.

FastCars is debating whether its next car model should be a gas or electric car. Due to factorylimitations, FastCars will only be able to introduce one new model in the next five years• Both models would have a five-year lifecycle, before they would need to be completelyredesigned. Thus FastCars will evaluate the project with a five-year time horizon• The gas model would have the following projected sales and cost of goods sold (in millions):Year 1 2 3 4 5Sales 14 17 19 19 15COGS 10 10 12 10 5   • The electric model would have the following projected sales and cost of goods sold (in millions):Year 1 2 3 4 5Sales 5 10 25 30 30COGS 4 7 15 15 12• Initial capital expenditures for retooling the factory will be 10 million dollars for the gas modeland 20 million dollars for the electric model. This cost will be depreciated fully using the straightline depreciation method over five years• A feasibility study was conducted that cost 1 million dollars and has already been paid for• The company’s…