Lunas corp was thrilled with the response hers 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. (A 10 percent interest rate should be used throughout this analysis unless otherwise specified.) Thirty percent of the buyer's gross profit on the product for the next four years. The buyer in this case was Luna Pharmaceutical. Luna gross profit margin was 60 percent. Sales in year one was projected to be $2 million and then expected to grow by 40 percent per year. o 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. o Using MS Excel (Spreadsheets) is NOT allowed. Lunas corp was thrilled with the response hers 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. (A 10 percent interest rate should be used throughout this analysis unless otherwise specified.) Thirty percent of the buyer's gross profit on the product for the next four years. The buyer in this case was Luna Pharmaceutical. Luna gross profit margin was 60 percent. Sales in year one was projected to be $2 million and then expected to grow by 40 percent per year. o 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. o Using MS Excel (Spreadsheets) is NOT allowed