Genesis Pharmaceutical has developed a new diabetes medication. It estimates that the sales volume during the first year will be $200,000$ units. The sales volume is projected to grow by $20\%$ each year. The price of each unit is $$50$ during the first year and will increase by $5\%$ each year. The fixed manufacturing costs for the medication are $$500,000$ for every $100,000$ units, and the variable costs are $$25$ per unit. The variable costs will increase by $10\%$ each year due to increased material and labor costs.

a$.$ Develop a spreadsheet model to estimate the total profit Genesis Pharmaceutical makes on this medication over the next five years.

Note: Round your answer to $2$ decimal places.

b$-1.$ Convert the future profits into their net present value. If it costs Genesis Pharmaceutical $$12,000,000$ in R&D to develop the medication, What is the net present value $($NPV$)$ of the $3-$year profit assuming a discount rate of $3\%?$

Note: Round your answer to $2$ decimal places.

b$-2.$ Will Genesis Pharmaceutical recuperate its R&D costs in three years, assuming a discount rate of $3\%?$

multiple choice $1$

Yes

No

c$-1.$ If Genesis Pharmaceutical increases the price of the medication by $10\%$ each year, What is the NPV of the $2-$year profit?

Note: Round your answer to $2$ decimal places.

c$-2.$Will Genesis be able to recuperate its R&D costs in $2$ years?

multiple choice $2$

Yes

No