Use the Table Below to Answer the Following Question(s) -Calculate the Net Present Value for Dresden's New Drug

question 45

Multiple Choice

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. $$\begin{array} { | l | l | } \hline \text { Dresden Pharmaceuticals } & \\\hline & \\\hline \text { Data } & \\\hline & \\\hline \text { Market Size } & 3,000,000 \\\hline \text { Unit (monthly Rx) revenue (\$) } & 420 \\\hline \text { Unit (monthly Rx) cost (\$) } & 150 \\\hline \text { Discount Rate (per cent) } & 8 \\\hline & \\\hline \text { Project Costs } & \\\hline \text { R\&D (\$) } & 875,000,000 \\\hline \text { Clinical Trials (\$) } & 145,000,000 \\\hline & \\\hline\end{array}$$
-Calculate the net present value for Dresden's new drug.

• A) $1,312,041,240
• B) ($339,600,000)
• C) $3,702,463,939
• D) ($932,028,690)

Understand the complexity and multifactorial basis of behavior.

Recognize the historical significance of figures like Wilhelm Wundt in psychology.

Critique major theories within psychology, such as behaviourism and psychoanalytic theory, for their perspectives and limitations.

Differentiate between the role of nature and nurture in determining behavior.

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Definitions:

Blood Glucose Monitoring

The process of testing the concentration of glucose in the blood, crucial for managing diabetes and ensuring optimal blood sugar levels.

Refrigerated

The state of being kept cool in a fridge to preserve freshness or prevent spoilage.

Intravenous Medications

Drugs delivered directly into the bloodstream via a vein to achieve rapid and efficient absorption and action.

Separated Mixture

A mixture that has been divided into its individual components or phases, often through physical means such as filtration, sedimentation, or centrifugation.