Millennium Laboratories Can License One of Its Patented Pharmaceutical Products

question 24

Multiple Choice

Millennium Laboratories can license one of its patented pharmaceutical products to a Japanese company for a five-year period. Millennium would like to insure that the fee it charges to the Japanese company will return no less than what the company projects it could have made had it marketed the product itself. Millennium believes it could have achieved a minimum of $400,000 in the first year, $10,500,000 in the second year, and $50 million, $65 million and $65 million at the end of each year. Given that interest rates are at 9%, what up-front fee paid immediately should Millennium charge?

• A) $122,508,000
• B) $136,107,000
• C) $148,357,000
• D) $157,502,000
• E) $190,900,000

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Definitions:

Subversive Subcultures

Groups that challenge norms and values of the mainstream culture, often advocating for radical changes to societal structures and conventions.

Rights Revolution

The rights revolution is the process by which socially excluded groups have struggled to win equal rights under the law and in practice since the 1960s.

Socially Excluded

Individuals or groups who are marginalized and unable to participate fully in economic, social, and political life of their community.

Equal Rights

The principle that everyone should have the same rights and opportunities without discrimination.