Question
Corona Pharmaceuticals is about to develop a drug that would help with the recovery from respiratory diseases. The present value of future cash flows from
Corona Pharmaceuticals is about to develop a drug that would help with the recovery from respiratory diseases. The present value of future cash flows from this project is $150 million. Fortunately, the company has already built such facilities before the project was even considered. The market value of the facilities is $50 million. What kind of cost does this investment constitute and what is the NPV of the project?
Group of answer choices Sunk cost, NPV is $150 million Opportunity cost, NPV is $150 million Sunk cost, NPV is $100 million Opportunity cost, NPV is $100 million Project externality, NPV is $150 million
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