What is the present value of cash flows

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The FDA will grant a patent for 10 years. After that, competitors may copy the drug. Suppose the drug generates $200 million in perpetuity. 6% Discount rate. What is the present value of these cash flows?

Would you please write the explanation as an excel layout with the formula you used? I am trying to put together a calculator tool for this kind of question.

Reference no: EM133121609

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