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 $200 million to date working on a cure, but is now at a crossroads. It can either abandon its program or invest another $60 million today.Unfortunately, the firm's opportunity cost of funds is 5 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 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9

$0 $0 $0 $0 $12,000,000 $13,400,000 $17,200,000 $20,700,000 $22,450,000

What is the net present value of the project?

Instruction:Enter your response rounded to two decimal places.

$

Should DAS continue with its plan to bring the drug to market, or should it abandon the project?