Mylan Pharm is investing in a new cancer treatment gene therapy. They have projected the cost of final clinical trials to be $90,000,000 (now) and for those to take 4 years to complete. They then have...

Extracted text: Mylan Pharm is investing in a new cancer treatment gene therapy. They have projected the cost of final clinical trials to be $90,000,000 (now) and for those to take 4 years to complete. They then have to get FDA approval, which will take an additional 2 years. The regulatory department has given the projections below. If your company goal is a MARR of 6%, a) What is the expected NPV b) Should you recommend this project? 30% chance of failure – No Revenue 50% chance of approval by FDA, 6 years from now, Revenue $20,000,000/ year for years 6-15 20% chance wider approval by FDA, 6 years from now, Revenue $55,000,000/year for years 6-15