Computing net present value

Assignment Help Finance Basics

Reference no: EM1362924

Dr. Harold Wolf of Medical Research Corporation (MRC) was thrilled with the response he had received from drug companies for his latest discovery, a unique electronic stimulator that reduces the pain from arthritis. The process had yet to pass rigorous Federal Drug Administration (FDA) testing and was still in the early stages of development, but the interest was intense. He received the three offers described below this paragraph. (A 10 percent interest rate should be used throughout this analysis unless otherwise specified.)

Offer I $1,000,000 now plus $200,000 from year 6 through 15. Also if the product did over $100 million in cumulative sales by the end of year 15, he would receive an additional $3,000,000. Dr. Wolf thought there was a 70 percent probability this would happen

Reference no: EM1362924

Questions Cloud

Characteristics functional properties in food : Proteins are major components of food. Describe in a factual manner as to what proteins are, as well as their characteristics in terms of functional properties in food.

Explain how would you extend above narrative to business : Explain how would you extend the above narrative to businesses, society as a whole or nations.

Create a print stream object using dos : Create a PrintStream object using dos and assign the resulting reference to ps, a PrintStream variable that has already been declared.

Show three-year moving average : Three-Year Moving Average - Data collected on the yearly registration for a seminar at GIPS and graph the original data and the two forecasts

Computing net present value : Dr. Harold Wolf of Medical Research Company was thrilled with the response he had received from drug companies for his latest discovery, a unique electronic stimulator that reduces the pain from arthritis.

What is the amplitude of the subsequent oscillations : What is the amplitude of the subsequent oscillations. A catcher "gives" with a baseball when catching it. If the baseball exerts a force of 519 N on the glove, so that the glove is displaced 10.0 cm, how much work is done by the ball.

Nutrition needs of both a man and woman : Create a 6-slide Microsoft® PowerPoint® presentation, including speaker notes, tracing the nutrition needs of both a man and a woman throughout the various stages of life.

Create new method public to create and return new picture : Create a new method public Picture frame (int frameSize, Color frameColor) this method will create and return a new picture object.

Designing tables of accounting cycle : Design at least two tables that could be used in a database for the hosting of information of your selected accounting cycle revenue cycle.

User Account

All Pages