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The medical association of South Africa has found a cure for a certain type of cancer, and they must decide on a strategy that will
The medical association of South Africa has found a cure for a certain type of cancer, and they must decide on a strategy that will create more value. Strategy A: To bring to market in 1 year, invest R1 billion now and returns R500 million, R400 million and R300 million in years 1, 2 and 3 respectively. Strategy B: To bring to market in 2 years, invest R200 million in years 0 and 1. Returns R300 million in years 2 and 3. (10 marks) Which strategy creates more value? Assume thar r =5%
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