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A pharmaceutical company has been able to generate a capital of $ 5 million from agenerous investor. The higher management wants to use the money

A pharmaceutical company has been able to generate a capital of $5 million from agenerous investor. The higher management wants to use the money wisely. The company islooking forward to investing in acquiring patents that will cost around $3 million in thecoming year. There is a need to maintain $180,000 of working capital every month to keeprunning its operations. Currently, the company can barely generate enough revenue tomeet its monthly expenses and suffers an occasional loss every two quarters.Below are some of the options for using the capital. Evaluate each one of them andrecommend the best one.1. Invest in acquiring a newly formed company worth $5million that has great technicalassets. The company has not been fortunate to generate enough revenue to run itsoperations.2. Do not invest the money and use it to keep running the companys operations.

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