• Zeta Pharmaceuticals has the following expenses for research and development (R&D):
  • R&D expenditures: $500,000
  • Revenue generated from new products: $1,000,000
  • Tax rate: 30%

• Requirements:
  1. Calculate Zeta Pharmaceuticals' net R&D expenses after tax.
  2. Determine the return on investment (ROI) for the R&D expenditures.
  3. Calculate the net present value (NPV) of the R&D projects.
  4. Analyze the internal rate of return (IRR) for the R&D investments.
  5. Determine the profitability index for the R&D initiatives.