Considering the introduction of new recently approved drug

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Reference no: EM131552682

Luzzo Pharmaceuticals is considering the introduction of a new recently approved drug. Which of the following is relevant to determining whether take the project?

a. Luzzo's cost of capital for this project is assumed to be 15%.

b. The cost to produce the drug is 5% of sales price.

c. Luzzo spent $15 million developing the drug.

d. Luzzo expects the sales of the new product to generate $1 million worth of revenue in 2015.

e. The project will create $250,000 worth of depreciable assets.

Reference no: EM131552682

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