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Drug company develops a flu vaccine. The company has two strategies Strategy A: To bring to market in 1 year, invest GH1billion now and returns

  1. Drug company develops a flu vaccine. The company has two strategies

Strategy A: To bring to market in 1 year, invest GH1billion now and returns GH500million, GH400million and GH300million in years 1, 2 and 3 respectively.

Strategy B: To bring to market in 2 years, invest GH200million in years 0 and 1. Returns GH300M in years 2 and 3. Which strategy creates more value?

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