Question

Orchid Biotech Company is evaluating several different development projects for experimental drugs. Although the cash flows are difficult to forecast, the company has come up with the following estimates of the initial capital requirements and NPVs for the projects. Given a wide variety of staffing needs, the company has also estimated the number of research scientists required for each development project (all cost values are given in millions of dollars). Project Number Initial Capital Number of Research Scientists NPV ($) نا نية حل نیا نیا 10.1 19.0 22.0 25.0 60.2

Answer 1

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projects (Autosaved) (Autosaved) (Autosaved) - Microsoft Excel (Product Activation Failed) Data Review View Add-Ins File Home Insert Page Layout Formulas - 2x % Cut Σ AutoSum : A A = = = V General 11 B- A A Wrap Text Merge & Center - Fill Z U $ % , :.: Insert Delete Format Conditional Format Formatting as Table Styles Cell Styles Clear Calibri E Copy Paste Format Painter B I Clipboard MS18 MR MS Sort & Filter Editing Find & Select Font Alignment Number Cells MT MW MX MY MZ NA NB PROJECT MU MV INITIAL NO OF CAPITAL SCIENTISTS в 2 3 R 15 4 20 12 10 mnm m NPV с 10.1 19 22 25 60.2 PI NPV/NO OF SCIENTISTS CA C/B 1.01 5.1 1.27 6.3 1.47 5.5 1.25 8.3 5.0 2.01 10 11 ACCORDING TO "PI" : GO FOR PROJECT V, III AND II THESE 3 PROJECTS FULLY UTLISE THE BUDGET 12 b 13 14 15 16 IN THIS CASE, WE USE RULE : NPV/NO OF SCIENTISTS ACCORDING TO THIS: WE WILL GO FOR : IV, II, III, I AND V 17 18 19 I N invest, EAA MI-np-ir_ REPLACEMENT S HPR GMAM EAC MACRS NPV RELEVANT BETA LEVERED REPLACEMENT BOND IRRnpvbeta RATION PBP ARR ferences: JF8 OPTION TO WAITSTEIN id < BO 130% 0 > Rea + . . * ENG 01:54 29-11-2019