IF INTEREST RATE IS 12%, SHOULD THE COMPANY INVEST IN THE NEW DRUG?

A drug association is deliberation either to deposit in the growth if the brand new cancer drug. Development will need an primary investment of 10 million now, afterwards commencement in a single year from now, the drug will beget annual increase of 4 million for 3 years.

a.) If the seductiveness rate is 12% should the association deposit in the drug? because or because not?

b) what about 8%?

thanks!

{ 1 comment }

Tanya August 28, 2011 at 12:04 am

I wouldn’t do it at either price. You lose money at 12% and even though you make a little at 8% it still probably would have made more sitting in an investment fund.

Comments on this entry are closed.

Previous post:

Next post:

http://www.maxprofitsinvest.com