Create a one-way data table in the Acron model to see how the NPV varies with discount rate, which is allowed to vary from 8% to 18% in increments of 0.5%. Explain intuitively why the results go in...


Create a one-way data table in the Acron model to see how the NPV varies with discount rate, which is allowed to vary from 8% to 18% in increments of 0.5%. Explain intuitively why the results go in the direction they go—that is, the NPV decreases as the discount rate increases. Should Acron pursue the drug for all these discount rates?

flow and then sum these discounted values. Use Excel formulas to do this, but don’t use the NPV function. (Hint: Remember that the discounted value of $1 received t years from now is 1(1 r)
t
dollars today.)



May 22, 2022
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