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	$12,300,000	$14,100,000	$16,500,000	$18,300,000	$21,300,000

What is the net present value of the project? Instructions: Enter your response rounded to the nearest whole number. Do not round intermediate calculations.

$

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

Abandon

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