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Luzzo Pharmaceuticals is considering the introduction of a new recently approved drug. Which of the following is relevant to determining whether take the project? a.Luzzo's
Luzzo Pharmaceuticals is considering the introduction of a new recently approved drug. Which of the following is relevant to determining whether take the project?
a.Luzzo's cost of capital for this project is assumed to be 15%.
b.The cost to produce the drug is 5% of sales price.
c.Luzzo spent $15 million developing the drug.
d.Luzzo expects the sales of the new product to generate $1 million worth of revenue in 2015.
e.The project will create $250,000 worth of depreciable assets.
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