• Pfizer is planning to invest in a new vaccine production facility with the following financial details:
  • Initial Investment: $3 billion
  • Estimated Annual Revenue: $1 billion
  • Operating Costs: $600 million annually
  • Depreciation Expense: $200 million annually
  • Tax Rate: 25%

• Requirements:
  1. Calculate the annual net income from the new facility.
  2. Prepare a five-year income projection for the vaccine production facility.
  3. Analyze the impact on Pfizer’s operating profit margin.
  4. Discuss the strategic importance of the new facility for Pfizer’s vaccine production capabilities.
  5. Evaluate the regulatory and operational risks associated with the new facility.