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What is the minimum and maximum value for NPV For the Moore Pharmaceuticals model, suppose that analysts have made the following assumptions: R&D costs: Triangular(S500,
What is the minimum and maximum value for NPV
For the Moore Pharmaceuticals model, suppose that analysts have made the following assumptions: R&D costs: Triangular(S500, $700, $800) in millions of dollars Clinical trials costs: Triangular($135, $150, $160) in millions of dollars Market size: Normal(2000000, 250000) Market share in year 1: Uniform(6%, 10%) All other data are considered constant. Develop and run a Monte Carlo simulationmodel to predict the net present value and cumulative net profit for each year.Summarize your results in a short memo to the R&D director. For the Moore Pharmaceuticals model, suppose that analysts have made the following assumptions: R&D costs: Triangular(S500, $700, $800) in millions of dollars Clinical trials costs: Triangular($135, $150, $160) in millions of dollars Market size: Normal(2000000, 250000) Market share in year 1: Uniform(6%, 10%) All other data are considered constant. Develop and run a Monte Carlo simulationmodel to predict the net present value and cumulative net profit for each year.Summarize your results in a short memo to the R&D directorStep by Step Solution
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