Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Macroeconomics Expert

Problem:

Consolidated Drugs, Inc. has invested $4 million testing and developing the new anti-aging drug.  Management now estimates which it will cost $2 million to manufacture and market this new product.  The present value of total revenue from all prospect sales of this drug is estimated to be $5 million.  On the basis of such numbers, management is recommending dropping project since costs will exceed revenues.

Required:

a.) Do you agree with this suggestion? Describe.

b.) The head of accounting department points out that if the product is produced and marketed, $4 million of the corporate overhead expenditures will be assigned to product. Does this new information modify your answer to (a) Describe?

Macroeconomics, Economics

  • Category:- Macroeconomics
  • Reference No.:- M910613

Have any Question? 


Related Questions in Macroeconomics

Equal marginal principlea write down the equal marginal

Equal Marginal Principle a. Write down the equal marginal principle for consumers. b. When does this condition hold? c. What does it mean?

Douglas fur is a small manufacturer of fake-fur boots it is

Douglas fur is a small manufacturer of fake-fur boots. It is one of many firms selling fake-fur boots. The following table shows its total cost of production Quantity of boots (pairs per hour) Total cost (dollar per hour ...

Assignment the governments involvement in the private

Assignment: The Government's Involvement In the Private Sector Currently, numerous Americans lack health insurance because they are unable to pay for it. However, the number of people who do not have health insurance is ...

Discussion - why the rapid developmentwhat do you feel has

Discussion - Why the Rapid Development? What do you feel has accounted for the rapid development of countries like South Korea, China, Brazil, and India? Explain your reasoning.

Essaywrite a 5 page essay 12 point type times new roman

Essay Write a 5 page essay (12 point type, Times New Roman, double spaced or the equivalent) on each of the following questions. 1. Provide an overview of the current global agreement surrounding the Production and Techn ...

Course schedule - mar2141 intl mrktng online 551545describe

Course Schedule - MAR2141 INT'L MRKTNG ONLINE 551545 Describe the kinds of problems that usually come up during international business negotiations. What kind of research can you do in anticipation of an upcoming interna ...

Let the exchange rate be defined as the number of dollars

Let the exchange rate be defined as the number of dollars per Japanese yen. Assume that there is a decrease in U.S. interest rates relative to that of Japan. (Part A) Would this event cause the demand for the dollar to i ...

Complete the following in excelnbspbased on the current

Complete the following in Excel: Based on the Current Population Survey (CPS) of March 1995, Paul Rudd extracted a sample of 1289 workers, aged 18 to 65, and obtained the following information on each worker: Wage = hour ...

If the interest rate is 75 percent then what is the present

If the interest rate is 7.5 percent, then what is the present value of $4,000 to be received in 6 years? Please show work

Take the following information as given for a small

Take the following information as given for a small, imaginary economy: - When income is $10,000, consumption spending is $6,500 - When income is $11,000, consumption spending is $7,300 Then, the multiplier for this econ ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen