Assume that lilly uses a required rate of return

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Assume that the $1 billion cost of bringing a new drug to market is spread out evenly over 10 years, and then 10 years remain for Lilly to recover their investment. How much cash would a new drug have to generate in the last 10 years to justify the $1 billion spent in the first 10 years? Assume that Lilly uses a required rate of return of 10%.

Reference no: EM13731589

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