Assess the cost-effectiveness of Company V's investment in research and development (R&D) for biotechnology using activity-based costing (ABC).

Requirements:

Identify cost drivers in Company V's biotechnology R&D activities.

Implement an ABC system to allocate costs to different R&D projects (e.g., drug discovery, clinical trials).

Calculate the cost per biotech innovation using ABC allocations.

Analyze profitability and regulatory hurdles in the biotechnology industry.

Recommend strategies to streamline R&D processes and enhance innovation outcomes.

Investment Project	Initial Investment ($)	Annual Cash Flows ($)	Project Life (years)
Drug Discovery	$30,000,000	$6,000,000	7
Clinical Trials	$22,000,000	$4,500,000	5