onsider the following scenario. A pharmaceutical company has spent 230 illion dollars developing and testing a new drug. The company projects the tal revenue from sales to be about 850 million dollars over the course of ree years after the drug approval by the Food and Drug Administration "DA). The company is close to the completion of the research phase, when hey learn that a competing drug has entered the market. Sales projections ave been downgraded to 150 million dollars. An investment of an additional million dollars would be required to complete the research and obtain the DA approval, if the company decides to do so. The cost of producing actual ills, after the research phase is complete, will be close to zero and can be nored for simplicity. The best advice for this company would be to abandon he production of this drug