Use the Information Below to Answer the Following Question(s) Suppose That the Project Manager of Trance Electronics Has Identified

question 29

Multiple Choice

Use the information below to answer the following question(s) . Below is a spreadsheet for Trance Electronics. $\begin{array}{|c|l|c|c|c|c|c|}\hline &\text { A } & \text { B } & \text { C } & \text { D } & \text { E } & \text { F } \\\hline 1&\text { Trance Electronics } & & & & & \\\hline 2 & \\\hline 3 & \text { Data } \\\hline 4 & \\\hline 5 & \text { Market size } & 20,000,000 \\\hline 6 & \text { Unit (monthly Rx) revenue } & \$ 120.00 \\\hline 7 & \text { Unit (monthly Rx) cost } & \$ 50.00 \\\hline 8 & \text { Discount rate } & 8 \% \\\hline 9 & & \\\hline 10 & \text { Project costs } & \\\hline 11 & \text { R\&D } & \$ 750,000,000 \\\hline 12 & \text { Clinical Trials } & \$ 100,000,000 \\\hline 13 & \text { Total Project Costs } & \\\hline 14 & & \\\hline 15 & \text { Model } & \\\hline 16 & & \\\hline 17 & \text { Year } & 1 &2&3&4&5\\\hline 18&\text { Market growth factor } & & 4 \% & 4 \% & 4 \% & 4 \% \\\hline 19&\text { Market size } & & & & & \\\hline 20&\text { Market share growth rate } & & 18 \% & 18 \% & 18 \% & 18 \% \\\hline 21 & \text { Market share } & 7 \% \\\hline 22 & \text { Sales } & \\\hline 23 & & \\\hline 24 & \text { Annual revenue } & \\\hline 25 & \text { Annual costs } \\\hline 26 & \text { Profit } \\\hline 27 & \text { Cumulative net profit } \\\hline 28 & \\\hline 29 & \text { Net present value } \\\hline\end{array}$ Suppose that the project manager of Trance Electronics has identified the following uncertain variables in the model and the distributions and parameters that describe them, as follows: Market size: normal with mean of 20,000,000 units and standard deviation of 4,000,000 units. R&D costs: uniform between $600,000,000 and $800,000,000.
Clinical trial costs: lognormal with mean of $150,000,000 and standard deviation $30,000,000. Annual market growth factor: triangular with minimum = 2%, maximum = 6%, and most likely = 3%.
Annual market share growth rate: triangular with minimum = 15%, maximum = 25%, and most likely = 20%.
The number of trials per simulation is equal to 10,000 at a Sim. Random Seed of 2. Run the simulation and answer the following questions using the Risk Solver Platform.
-With reference to the trend chart, which year shows the highest mean net cumulative profit?

• A) Year 1
• B) Year 2
• C) Year 4
• D) Year 5

Recognize circumstances that could lead to breaches of corporate duties by directors and officers and the potential legal consequences.

Identify the rights and protections available to directors and officers, such as indemnification and the business judgment rule.

Analyze the legal implications of corporate governance decisions, including hiring practices, breach of contracts, and negligence.

Understand the mechanisms and legal obligations involved in corporate decision-making, including disclosure of conflicts of interest.

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Definitions:

Anorexia

An eating disorder characterized by an intense fear of gaining weight and a distorted body image, leading to self-imposed starvation and excessive weight loss.

Bulimia

An eating disorder marked by binge eating followed by purging to prevent weight gain.

Eating Disorder

Mental disorders defined by abnormal or disturbed eating habits that negatively affect a person's health or well-being.

Healthy Weight

A state in which an individual's body mass index (BMI) falls within a range deemed supportive of overall health and well-being, taking into account factors like age, sex, and bone structure.