Dr. Harold Wolf of Medical Research Corporation (MRC) was thrilled with the response he had received from drug companies for his latest discovery, a unique electronic stimulator that reduces the pain from arthritis. The process had yet to pass rigorous Federal Drug Administration (FDA) testing and was still in the early stages of development, but the interest was intense. He received the three offers described below this paragraph. (A 10 percent interest rate should be used throughout this analysis unless otherwise specified.) Offer II Thirty percent of the buyer's gross profit on the product for the next four years. The buyer in this case was Zbay Pharmaceutical. Zbay's gross profit margin was 60 percent. Sales in year one were projected to be $2 million and then expected to grow by 40 percent per year. Which offer would you advise Dr. Wolf to take? For part (a), you need to use (time-line and formulas only. For part (b) you need to use your calculator functions (PV, FV, PMT, I/Y, and N) to estimate the value of each offer. Compare the answers from parts (a) & (b); they must match Hint: To calculate the value of each offer you only need to calculate the PV (the value of the offer today). No need to calculate future values and then discount them back to present values Using MS Excel (Spreadsheets) is NOT allowed. Groups of 4 students. Make sure you turn in a clean solution (hardcopy only before the lecture). The way you present your project matters You are permitted to turn in either a typed or a hand-written report