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Business, 24.06.2019 17:30 IDONTHAVEABRAIN

Approximately 14 million americans are addicted to drugs and alcohol. the federal government estimates that these addicts cost the u. s. economy $300 billion in medical expenses and lost productivity. despite the enormous potential market, many biotech companies have shied away from funding research and development (r& d) initiatives to find a cure for drug and alcohol addiction. your firm - drug abuse sciences (das) - is a notable exception. it has spent $235 million to date working on a cure, but is now at a crossroads. it can either abandon its program or invest another $50 million today. unfortunately, the firm's opportunity cost of funds is 5 percent and it will take another five years before final approval from the federal drug administration is achieved and the product is actually sold. expected (year-end) profits from selling the drug are presented in the accompanying table. year 1 year 2 year 3 year 4 year 5 year 6 year 7 year 8 year 9 $0 $0 $0 $0 $14,300,000 $16,500,000 $19,200,000 $21,900,000 $24,800,000 what is the net present value of the project?

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