Answer: The present value of the new drug is $19.33 million
We follow these steps to arrive at the answer:
Expected Revenues from the drug in year 1(P) $2 million
Growth Rate (g) 2% p.a.
No. of years (n) 17 years
Discount rate (r) 9% p.a.
Since the revenues are expected to grow at a constant rate of 2% p.a, we can treat this series of cash flows as a <u>growing annuity. </u>
We calculate the Present Value of a growing annuity with the following formula:
![PV = \frac{P}{r-g}*\left [ 1- \left (\frac{1+g}{1+r}\right)^{n}\right]](https://tex.z-dn.net/?f=PV%20%3D%20%5Cfrac%7BP%7D%7Br-g%7D%2A%5Cleft%20%5B%201-%20%5Cleft%20%28%5Cfrac%7B1%2Bg%7D%7B1%2Br%7D%5Cright%29%5E%7Bn%7D%5Cright%5D)
Substituting the values we get,
![PV = \frac{2}{0.09-0.02}*\left [ 1- \left (\frac{1+0.02}{1+0.09}\right)^{17}\right]](https://tex.z-dn.net/?f=PV%20%3D%20%5Cfrac%7B2%7D%7B0.09-0.02%7D%2A%5Cleft%20%5B%201-%20%5Cleft%20%28%5Cfrac%7B1%2B0.02%7D%7B1%2B0.09%7D%5Cright%29%5E%7B17%7D%5Cright%5D)
![PV = \frac{2}{0.07}*\left [1- 0.323558233\right]](https://tex.z-dn.net/?f=PV%20%3D%20%5Cfrac%7B2%7D%7B0.07%7D%2A%5Cleft%20%5B1-%200.323558233%5Cright%5D)
Answer:
The answer is letter A.
Explanation:
Research about aptitude testing
The difference between the standard cost of a product and its actual cost is called a cost variance. Therefore the statement is true.
<h3>What is the objective of variance?</h3>
Changing across all of the pieces of information in a data set, variance is a measurement of distribution. It enables us to estimate how far away a set of factors are from each other.
To describe the variation or difference between the standard cost of a product and its actual cost the use of cost variance is done. It is utilized to estimate the financial performance of any project.
Therefore, the statement is True.
Learn more about Variance, here:
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Answer:
The US constitution partitions government into three unmistakable branches.These branches are:
(an) Executive
(b) Legislative
(C) Judicial branches
This idea is additionally called "partition of forces". Each branch is equivalent to the next i.e each branch is autonomous from the other, however every hold same position and yes the facts confirm that the establishing father legitimize each part of government as vital for a sound republic Because the establishing father assume a significant job to partition the framework into three branches.
Governing rules: Each branch have its own duties and simultaneously, for the smooth running of the nation these three branches cooperate thus, that the privileges of residents are not overlooked and each resident treated equivalent to other and This is conceivable or done through checks and balances.A branch may utilize its forces so as to keep up a level of influence between these three branches.By this, nobody branch hold more force. each branch hod balanced governance over the other.
INTERESTS OF MINORITY SHAREHOLDERS OVER MAJORITY SHAREHOLDERS:
Significant piece of India's populace by and large comprises of minority part the interests of minorities are retained by the administration to more prominent degree , in practically all the areas, for example, training, modern, science and medicals, minorities are given significant significance . Numerous administration motivation are likewise embraced by the judicial,executive and council level of the legislature.
Result: The ancestors separated the legislature into 3 kinds, in order to give equivalent rights all the interests of people at all levels. Such in detail is as of now clarified above in the above segment.
