You work for a pharmaceurical company that has developed a new drug. The pascat on the drug will last $17$ years. You expect that the drug's profits will be $$2$ million in its first year and that this amount will grow at a rate of $5\%$ per year for the next $17$ years. Once the patent expires, other pharmaceurical companies will be able to produce the same drug and comperi$-$cion will likely drive profits to zero, What is the present value of the new drug if the interest rate is $10\%$ per year?

Calculation:

$22.$ Yous work for phumaceutical company har has developed acow drug. The pasent on she drag whll last $17$ years. You expect that che drugs profits will be $$2$ mulloum in iss firse year and that this amoums will grow at rate of $5\%$ per year for the nexr $17$ years Orce the patent eum will likely drive profirs toro. What is the present value of the new drugg if the boteress wate is $10\%$ per year?