Less than 200

Merck company should not bid to license the Davanrik.

Applying the decision tree model, I compute the cost from historic information
and probabilities of both success and failure outcomes in each of the 3 phases.
Then I calculate the expected value from the cash flow and probability of
occurrence. For the decision to bid license, there are 5 possible outcomes that
will be successful and 4 possible outcomes that will fail. The expected value for
successful depression only is, that for weight is, and that for both is , while the
expected value for failure is . Although the