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If we consider the sale of Medfield as the sale of existing assets, how does the elimination of R&D, investment in future assets, change the

If we consider the sale of Medfield as the sale of existing assets, how does the elimination of R&D, investment in future assets, change the valuation of Medfield? (Using the Exhibit 4 spreadsheet, distinguish between the NPV value of existing products and R&D)

NOPAT of Initial year = 47.28450527

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KHIBIT 44.4 | Financial Forecast Based on Existing Products (in millions of dollars, unless otherwise noted) Direct Marketing General and Admin. Costs of Sales Research 23.0% 19.0% 27.0% 4.0% Taxes Discount Rate 32.0% 8.5% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 54.77 210.56 47.46 214.77 49.40 219.07 50.39 109.53 25.19 27.38 6.30 12.60 39.67 10.55 40.47 9.31 41.28 9.49 42.10 9.68 42.94 9.88 43.80 10.07 21.90 5.04 10.95 2.52 5.48 1.26 78.97 18.46 Fleximat Sales Cost of sales Lodamadal Sales Cost of sales Orsamorph Sales Cost of sales Reximet Sales Cost of sales Total sales Cost of sales Research Direct marketing General and administrative 80.55 18.53 82.16 18.90 83.80 19.27 85.48 19.66 87.19 20.05 88.93 20.45 90.71 20.86 92.52 21.28 94.37 21.71 329.20 76.47 62.46 91.22 13.94 85.11 27.15 57.96 335.79 77.23 63.80 90.66 13.43 90.66 29.01 61.65 80.00 18.40 422.50 97.18 80.28 114.08 16.90 114.08 36.50 77.57 81.60 18.77 317.04 72.92 60.24 85.60 12.68 85.60 27.39 58.21 83.23 19.14 266.42 61.28 50.62 71.93 10.66 71.93 23.02 48.91 84.90 19.53 243.27 55.95 46.22 65.68 9.73 65.68 21.02 44.66 86.59 19.92 197.43 45.41 37.51 53.31 7.90 53.31 17.06 36.25 88.33 20.32 189.99 43.70 36.10 51.30 7.60 51.30 16.41 34.88 90.09 20.72 188.09 43.26 35.74 50.78 7.52 50.78 16.25 34.53 91.89 21.14 186.27 42.84 35.39 50.29 7.45 50.29 16.09 34.20 Taxes NOPAT KHIBIT 44.4 | Financial Forecast Based on Existing Products (in millions of dollars, unless otherwise noted) Direct Marketing General and Admin. Costs of Sales Research 23.0% 19.0% 27.0% 4.0% Taxes Discount Rate 32.0% 8.5% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 54.77 210.56 47.46 214.77 49.40 219.07 50.39 109.53 25.19 27.38 6.30 12.60 39.67 10.55 40.47 9.31 41.28 9.49 42.10 9.68 42.94 9.88 43.80 10.07 21.90 5.04 10.95 2.52 5.48 1.26 78.97 18.46 Fleximat Sales Cost of sales Lodamadal Sales Cost of sales Orsamorph Sales Cost of sales Reximet Sales Cost of sales Total sales Cost of sales Research Direct marketing General and administrative 80.55 18.53 82.16 18.90 83.80 19.27 85.48 19.66 87.19 20.05 88.93 20.45 90.71 20.86 92.52 21.28 94.37 21.71 329.20 76.47 62.46 91.22 13.94 85.11 27.15 57.96 335.79 77.23 63.80 90.66 13.43 90.66 29.01 61.65 80.00 18.40 422.50 97.18 80.28 114.08 16.90 114.08 36.50 77.57 81.60 18.77 317.04 72.92 60.24 85.60 12.68 85.60 27.39 58.21 83.23 19.14 266.42 61.28 50.62 71.93 10.66 71.93 23.02 48.91 84.90 19.53 243.27 55.95 46.22 65.68 9.73 65.68 21.02 44.66 86.59 19.92 197.43 45.41 37.51 53.31 7.90 53.31 17.06 36.25 88.33 20.32 189.99 43.70 36.10 51.30 7.60 51.30 16.41 34.88 90.09 20.72 188.09 43.26 35.74 50.78 7.52 50.78 16.25 34.53 91.89 21.14 186.27 42.84 35.39 50.29 7.45 50.29 16.09 34.20 Taxes NOPAT

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