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Mylan Pharm is investing in a new cancer treatment gene therapy. They have projected the cost of final clinical trials to be $80,000,000 (now) and

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Mylan Pharm is investing in a new cancer treatment gene therapy. They have projected the cost of final clinical trials to be $80,000,000 (now) and will take 3 years to complet then they have to get FDA approval which will take to year 5. The regulatory department has given the following projections and you have to determine if it should proceed with an 8% MARR? 40% chance of failure - No Revenue 40% chance of approval by FDA, 5 years from now, Revenue $20,000,000/ year for years5-15 after approval 20% chance wider approval by FDA, 5 years from now, Revenue $25,000,000/year for 5-15 years -$11,784,000 No O $3,521,000 Yes $9,352,000 Yes -$4,320.000 No

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