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Approximately 14 million Americans are addicted to drugs and alcohol. The federal government estimates that these addicts cost the U.S. economy $300 billion in medical

Approximately 14 million Americans are addicted to drugs and alcohol. The federal government estimates that these addicts cost the U.S. economy $300 billion in medical expenses and lost productivity. Despite the enormous potential market, many biotech companies have shied away from funding research and development (R&D) initiatives to find a cure for drug and alcohol addiction. Your firm Drug Abuse Sciences (DAS) is a notable exception. It has spent $230 million to date working on a cure, but is now at a crossroads. It can either abandon its program or invest another $35 million today. Unfortunately, the firms opportunity cost of funds is 8 percent and it will take another five years before final approval from the Federal Drug Administration is achieved and the product is actually sold. Expected (year-end) profits from selling the drug are presented in the accompanying table. Year 1 ($0)Year 2 ($0) Year 3 (0) Year 4 ($0) Year 5 ($13,100,000) Year 6 ($15,200,000) Year 7 ($18,400,000) Year 8 ($21,300,000) Year 9 ($22,800,000) What is the net present value of the project? Instruction: Round your answer to the nearest penny (2 decimal places). Use a negative sign (-) where appropriate. $ Should DAS continue with its plan to bring the drug to market, or should it abandon the project?

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