3 of 12 View Policies < > Current Attempt in Progress -/16 Pharoah Biotech enters into a licensing agreement with Pang Pharmaceutical for a drug under development. Pharoah will receive a payment of 9,800,000 if the drug receives regulatory approval. Based on prior experience in the drug-approval process, Pharoah determines that the drug has a 95% chance of approval, and a 5% chance of denial. (a) Determine the transaction price of the arrangement for Pharoah Biotech. Transaction price Save for Later Attempts: 0 of 1 used Submit