5B

Problem 3 0

What is the rNPV of the licensing agreement from AZ Biotech's perspective? Assume a 5% royalty fee on any cash flows ABC Pharmaceutical receives from AZ1024 after approval, and a discount rate of 10% per year between years 4-7, 15% per year between years 2-4, and 20% per year between years 0-2. (Note: The commercialization profits for ABC Pharmaceutical reported in the overview are post royalty fee payments. Your answer should be expressed in units of millions of dollars.) rNPV = $ million

This is all they gave me, do you want to see the paper and review yourself?