Question: A pharmaceutical manufacturer has projected net profits for a new drug that is being released to the market over the next five years:
|
Year
|
Net Profit
|
|
1
|
S(300,000,000)
|
|
2
|
S(145,000,000)
|
|
3
|
$50,000,000
|
|
4
|
S125,000,000
|
|
5
|
$530,000,000
|
Use a spreadsheet to find the net present value of these cash flows for a discount rate of 3%.