For the Moore Pharmaceuticals model, suppose that analysts have made the following assumptions:

• R&D costs: Triangular($500, $700, $800) in millions of dollars

• Clinical trials costs: Triangular($135, $150,

$160) in millions of dollars

• Market size: Normal(2000000, 250000)

• Market share in year 1: Uniform(6%, 10%)

All other data are considered constant. Develop and run a Monte Carlo simulation model to predict the net present value and cumulative net profit for each year. Summarize your results in a short memo to the R&D director.