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Please help solve this in Excel. Genesis Pharmaceutical has developed a new diabetes medication. It estimates that the sales volume during the first year will
Please help solve this in Excel.
Genesis Pharmaceutical has developed a new diabetes medication. It estimates that the sales volume during the first year will be 200,000 units. The sales volume is projected to grow by 20% each year. The price of each unit is $50 during the first year and will increase by 5% each year. The fixed manufacturing costs for the medication are $500,000 for every 100,000 units, and the variable costs are $25 per unit. The variable costs will increase by 10% each year due to increased material and labor costs. a. Develop a spreadsheet model to estimate the total profit Genesis Pharmaceutical makes on this medication over the next five years Note: Round your answer to 2 decimal places. b-1. Convert the future profits into their net present value. If it costs Genesis Pharmaceutical $12,000,000 in R\&D to develop the medication, What is the net present value (NPV) of the 3 -year profit assuming a discount rate of 3% ? Note: Round your answer to 2 decimal places. b-2. Will Genesis Pharmaceutical recuperate its R\&D costs in three years, assuming a discount rate of 3% ? Yes No c-1. If Genesis Pharmaceutical increases the price of the medication by 10% each year, What is the NPV of the 2-year profit? Note: Round your answer to 2 decimal placesStep by Step Solution
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