12F Surle Labs produces a single pharmaceutical drug, Zolax, for which the patent expires in four years. After the patent expires, Surle will earn no more economic profits after the fourth year passes because 1) dozens of firms will produce a generic version of 2013:; that will dlive the price of Zolax down to unit costs, and 2} it has invested nothing in research and development of new drugs and so will have no new sources of profit when the patent on Zolax expires in four years. You work as a research assistant for an investment-banking firm that specializes in acquisitions of pharmaceutical firms. After examining the financial statements of Surle Labs, you predict that Surle will earn $23 million in economic prot in EACH of the next four years, after which, it will earn zero economic prot forever. Your job is to advise a potential buyer of the drug rm on the market value of this firm. You believe 12 percent is the appropriate risk-adjusted discount rate for valuing Surle Labs. a. You estimate [i.e., compute] the value of Surle to be 33 b. If conditions in the market deteriorate making investment in drug firms more risky than you had originally anticipated, then you will need to use (a lower, a higher, the same) risk-adjusted discount rate, which will (decrease, increase, not affect) the value of Surle Labs