Question
AsiaFarma is considering investing in the development of a drug that cures Covid-19. After a series of tests, R&D, as well as Business Development teams,
AsiaFarma is considering investing in the development of a drug that cures Covid-19. After a series of tests, R&D, as well as Business Development teams, have recommended that the firm go ahead with the development phase. They believe that there is a 70% chance that the project will be successful. If that is the case, the project will generate an NPV of $ 4,5 billion from the sales of the drug for the next 5 years after the launch of the product. But if it is not, the NPV will be $-0.5 million. Based on this information, please calculate the Expected Payoff for this project.
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