CF -Term -II : MERCK & Co Case

Dep S cost of Launch = 250 Mn

Commercialization PV = 1.2Bn

Dep S =.85 600

570
Dep F =.15 -30

Cost : 200 mil

53 WT L S =.75 46.25
Final Net Present Value Dep S =.1 Wt L S cost of Launch = 100 Mn
: - 3.345 mil Commercialization PV = 0.345Bn
Hence Not Profitable option WT L S =.15 WT L F =.25 -37.5
8.75
Cost : 150 mil
44.425 -4.6875
Both S =.05
S =.6 24.1125 Both S =.70 825
8.655 522.25
-28 Dep S =.15
F =.7
-3.345 -145
F =.4 WT L S =.05
-12
Both S cost of Launch = 400 Mn
F =.1 Commercialization PV = 2.25Bn
-107.75

Cost : 30 mil Cost : 40 mil Cost : 500 mil

-50
Phase 1 time : 2 Yrs Phase 2 time : 2 Yrs
Phase 3 time : 3 Yrs