Pfizer Is Planning to Embark on Developing a New Medicine

question 25

Multiple Choice

Pfizer is planning to embark on developing a new medicine for the cure of common cold. If undertaken, the project requires $10 million dollar on R&D, every year for 5 years. The medicine will be marketed in Year 6 and net returns are estimated to be $10 million for the next 5 years at the end of which Pfizer plans to sell the formula to its competitor for $1 million. If corporation requires a ROI of 15%, what is the NPV for the project?

• A) $16.6 million
• B) -$16.6 million
• C) $16.85 million
• D) -$16.85 million
• E) $0.123 million

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Definitions:

Twa Pygmy

An indigenous people of central Africa, known for their short stature and traditionally hunter-gatherer lifestyle.

Ota Benga

A man from the Mbuti people of the Congo who was brought to the United States in the early 20th century and displayed in an exhibition, highlighting the dark aspects of human zoos and racial science practices of the time.

Polynesian Boy

Refers to a male youth from the Polynesian cultural region, which spans a vast area of the Pacific Ocean and includes numerous islands.

Dehumanization

The process of depriving a person or group of positive human qualities, making them seem less than human and not deserving of moral consideration or empathy.