Answer: The present value of the new drug is $19.33 million
We follow these steps to arrive at the answer:
Expected Revenues from the drug in year 1(P) $2 million
Growth Rate (g) 2% p.a.
No. of years (n) 17 years
Discount rate (r) 9% p.a.
Since the revenues are expected to grow at a constant rate of 2% p.a, we can treat this series of cash flows as a <u>growing annuity. </u>
We calculate the Present Value of a growing annuity with the following formula:
Substituting the values we get,
Answer:
increase
Explanation:
the law is indirectly proportional
Answer:
Variable cost = $6,550
Explanation:
Variable cost is the cost incurred during the production process that changes with quantity of goods produced. For example labor, machine operating cost, and raw materials.
The other type of cost is variable cost that does not change with volume of production, but rather remains constant. For example rent, tax, and so on.
In the given instance the costs that are variable are cost of labor, cost of electricity to run printing presses, and cost of ink for paper.
Monthly mortgage and property tax are fixed cost that must be paid regardless of production volume.
variable cost = $5,500 + $800 + $250
Variable cost = $6,550
Answer:
The correct answer is True.
Explanation:
At the end of a common agreement, there is no consequence for any of the parties, since it is their will to end the contract that they previously agreed to sign
Termination of the lease by the lessor.
The lessor may unilaterally terminate the lease under the conditions established by law, paying any compensation that may arise.
The law expressly establishes when and why the lease can be terminated by the lessor, and only in those cases can the contract be terminated without there being room for the payment of a penal clause or non-compliance, if any, since in those cases the law in particular established how and why to terminate the contract, and set the penalties to which there is room.
Answer:
Theory X employees
Explanation:
Douglas McGregor formulated or constructed Theory X as well as Theory Y, which suggest or states two aspects of human behaviour at the work.
In short, 2 different views of the employees or individuals, one which comprise of negative aspects or views is the Theory X, and other one is Theory Y, which comprise of the positive aspects and the views of the people and employees.
So, in this case, the team members who need the supervision, threat of punishment and direction for the non - compliance will be the Theory X employees as it contain the negative aspects.