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:

False Memories

Distorted or fabricated recollections of events that did not actually happen, often influenced by suggestions or the merging of different memories.

Hypnotic Suggestion

Hypnotic suggestion involves delivering instructions or suggestions to a person under hypnosis, potentially influencing their thoughts, behaviors, or perceptions.

Memory Distortion

The alteration of a memory or the introduction of inaccuracies into a memory over time, which can significantly impact how the memory is recalled.

Source Amnesia

A memory disorder in which someone can remember certain information, but not how, when, or where they learned that information.