Determine the net present value of the following five options through the year 2009. DISCOUNT RATE 30%

Phase I/II Production Phase III Production

(a) Nucleon Nucleon

(b) Nucleon Licensee

(c) Contractor Nucleon

(d) Contractor Licensee

(e) Licensee Licensee

Compare options (a) through (e) using two criteria:

1. Which option has the highest NPV?

	PHASE 1/2	PHASE 3	PHASE I/II COST	PHASE III COST	TOTAL COST $
OPTION A	NUCLEON	NUCLEON	$ 7,394	$ 20,000	$ 27,394
OPTION B	NUCLEON	LICENSEE	$ 7,394	$ -	$ 7,394
OPTION C	CONTRACTOR	NUCLEON	$ 4,795	$ 20,000	$ 24,795
OPTION D	CONTRACTOR	LICENSEE	$ 4,795	$ -	$ 4,795
OPTION E	LICENSEE	LICENSEE	$ -	$ -	$ -

YEAR	SALES($ THOUSANDS)
1998	$ 53,700.00
1999	$ 99,500.00
2000	$ 125,000.00
2001	$ 130,000.00
2002	$ 150,000
2003	$ 157,500
2004	$ 165,375
2005	$ 173,644
2006	$ 182,326
2007	$ 191,442
2008	$ 201,014
2009	$ 211,065