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Luzzo Pharmaceuticals is considering the introduction of a new recently approved drug. You are an equity analyst and you are trying to estimate the value
Luzzo Pharmaceuticals is considering the introduction of a new recently approved drug. You are an equity analyst and you are trying to estimate the value of this drug to the company. You are aware of the following information. Which of the following pieces of information are NOT relevant to determining whether or not to take the project?
Luzzo expects the sales of the new product to generate $1 million worth of revenue in 2015. | ||
The cost to produce the drug is 5% of sales price. | ||
Luzzo spent $15 million developing the drug. | ||
Luzzo s cost of capital for this project is assumed to be 15%. | ||
The project will create $250,000 worth of depreciable assets. |
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