Determine the net present value of the following five


Determine the net present value of the following five options through the year 2009. (Use a discount rate of 30% and show what numbers you used and how you did the NPV calculation. DO NOT JUST WRITE DOWN FIVE NUMBERS!): Phase I/II Production Phase III Production (a) Nucleon Nucleon (b) Nucleon Licensee (c) Contractor Nucleon (d) Contractor Licensee (e) Licensee Licensee Compare options (a) through (e) using two criteria: Which option has the highest NPV? Identify what Nucleon’s competitive advantage(s) would be if it chooses each of the five options (for example, if Nucleon chooses Option (e) then manufacturing capabilities are unlikely to be part of Nucleon’s competitive advantage). Also comment on the ability of Nucleon to sustain the advantage implied with each of the five options. Based on your analysis of NPV and competitive advantage, which option do you recommend? Your assignment should include a one-page spreadsheet showing the NPV calculations and a write-up. NOTE: There is an error in Exhibit 5 on page 15. In the sentence “After the year 2000, sales of CRP-1…”, 2000 should be changed to 2002.

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Operation Management: Determine the net present value of the following five
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