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Use the table below to answer the following question(s) .
Dresden Pharmaceuticals has decided to go ahead and start clinical trials on a potential new drug. The total R&D costs are estimated to reach around $875,000,000 with clinical trials mounting to
$145,000,000. The current market size is estimated to be around 3,000,000 and is expected to grow at 4 percent every year. The market share Dresden hopes to capture in the first year is 7 percent, and is projected to grow by 25 percent each year for the next 4 years. A monthly prescription is anticipated to generate revenue of $420 while incurring variable costs of $150. A discount rate of 8 percent is assumed.
-Calculate cumulative net profit at the fourth year.
Reflex Response
An automatic, involuntary reaction to a stimulus that does not involve a conscious decision.
Automatically Grasp
An instinctive or inherent understanding or recognition of concepts or situations without the need for conscious reasoning.
Objects
Material things that can be seen and touched, existing in physical reality.
Habituation
The method by which one becomes used to a stimulus through continuous exposure, resulting in a diminished reaction.
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