Just number 10

Question 10. Follow up with Question 9, the company announces that it has discovered a new drug. The investment spent initially for R&D is $40 million. Another $10 million will be spent right now for further development of the drug. Then, starting from the next year, the drug is expected to generate an annual net cashflow of $30 million for the new drug for the next 10 years. Required rate of return is still 13%. Does this look to you that the announcement of this new drug is going to drive the company's value to the moon? To the moon! O To the ground! Going nowhere