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please sole the following questions i already did half of both of them. Orchid Biotech Company is evaluating several different development projects for experimental drugs.
please sole the following questions i already did half of both of them.
Orchid Biotech Company is evaluating several different development projects for experimental drugs. Although the cash flows are difficult to forecast, the company has come up with the following estimates of the initial capital requirements and NPVs for the projects: . Given a wide variety of staffing needs, the company has also estimated the number of research scientists renuired for each dovolonment nroiect (all coct values are aivon in millinne of dollarcl) Data table (Click on the following icon in order to copy its contents into a spreadsheet.) You run a construction firm. You have just won a contract to build a government office complex. Building it will require an investment of $9.7 million today and $5.1 million in one year. The government will pay you $21.4 million in one year upon the building's completion. Suppose the interest rate is 10.4%. a. What is the NPV of this opportunity? b. How can your firm turn this NPV into cash today? a. What is the NPV of this opportunity? The NPV of the proposal is $ million. (Round to two decimal places.) b. How can your firm turn this NPV into cash today? (Select the best choice below.) A. The firm can borrow $14.8 million today and pay it back with 10.4% interest using the $21.4 million it will receive from the government. B. The firm can borrow $24.00 million today and pay it back with 10.4% interest using the $21.4 million it will receive from the government. C. The firm can borrow $19.38 million today and pay it back with 10.4% interest using the $21.4 million it will receive from the government. D. The firm can borrow $14.8 million today and pay it back with 10.4% interest using the $19.38 million it will receive from the government. Orchid Biotech Company is evaluating several different development projects for experimental drugs. Although the cash flows are difficult to forecast, the company has come up with the following estimates of the initial capital requirements and NPVs for the projects: Given a wide variety of staffing needs, the company has also estimated the number of research scientists required for each development project (all cost values are given in millions of dollars). a. Suppose that Orchid has a total capital budget of $60 million. How should it prioritize these projects? b. Suppose that Orchid currently has 12 research scientists and does not anticipate being able to hire more in the near future. How should Orchid prioritize these projects? a. Suppose that Orchid has a total capital budget of $60 million. How should it prioritize these projects? The profitability index for Project I is The profitability index for Project II is The profitability index for Project III is (Round to two decimal places.) (Round to two decimal places.) (Round to two decimal places.) The profitability index for Project IV is 1.25 . (Round to two decimal places.) The profitability index for Project V is . (Round to two decimal places.) Based on the profitability index, how should Orchid Biotech Company prioritize these projects? (Select from the drop-down menus.) Selected first Selected second Selected thirdStep by Step Solution
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