Use the Table Below to Answer the Following Questions) -Calculate the Projected Profit for the Third Year

question 16

Multiple Choice

Use the table below to answer the following questions) .
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. $$\begin{array} { | l | l | } \hline \text { Dresden Pharmaceuticals } & \\\hline & \\\hline \text { Data } & \\\hline & \\\hline \text { Market Size } & 3,000,000 \\\hline \text { Unit monthly Rx) revenue \$) } & 420 \\\hline \text { Unit monthly Rx) cast \$) } & 150 \\\hline \text { Discount Rate per cent) } & 8 \\\hline & \\\hline \text { Project Costs } & \\\hline \text { R\&D \$) } & 875,000,000 \\\hline \text { Clinical Trials \$) } & 145,000,000 \\\hline & \\\hline\end{array}$$
-Calculate the projected profit for the third year.

• A) $31,315,200
• B) $2,373,996,000
• C) $1,149,876,000
• D) $1,494,838,800

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Definitions:

Mendelian Rules

The foundational principles of genetics discovered by Gregor Mendel, explaining how traits are inherited through dominant and recessive alleles.

Inheritance

The process by which genetic information is passed on from parents to their offspring, determining certain characteristics of the offspring.

Live-virus Vaccines

Vaccines that contain a version of the living virus that has been weakened so that it does not cause the disease in people with normal immune systems.

Weakened Viruses

Viruses that have been attenuated (reduced in virulence) for use in vaccines, allowing the immune system to develop immunity without causing the disease.