Directions: Write 4 to 5 sentences for each questions

What is the expected value of the licensing arrangement to LAB? Assume a 5% royalty fee on any cash flows that Merck receives from Davanrik after a successful launch.

 
1. How would your analysis change if the cost of launching Davanrik for weight loss were $225 million instead of $100 million as given in the case?

Source: https://drive.google.com/file/d/1tvj-AxRyARpru9vftIrxF-0X5vFt7Nvb/view?usp=sharing