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Posted on Oct 06, 2024

Crane Pharmaceuticals entered into a licensing agreement with Zenith Lad for a new drug under development. Crane will receive $8050000 if the drug received FDA

Crane Pharmaceuticals entered into a licensing agreement with Zenith Lad for a new drug under development. Crane will receive $8050000 if the drug received FDA approval. Based on prior approval, Crane determines that it is 80% likely that the drug will gain approval. The transaction price of this arrangement is?

_ $6440000

_ $1610000

_ $8050000

_ $0 until approval is received.

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