Gopher Drugs

Given
Development Cost: $ 9.30 millions Cash Flows
LifeTime: 20 years End Of Year Gross Margins($M)
Year 1 Margin: 1.2 millions 1 $1.2
Inc through year: 8 2 $1.3
Rate of increase: 10% 3 $1.5
Rate of decrease: 5% 4 $1.6
Discount Rate: 12% 5 $1.8
6 $1.9
7 $2.1
(Net) Present Value: $12.60 8 $2.3
Actual NPV: $3.30 millions 9 $2.2
10 $2.1
11 $2.0
12 $1.9
13 $1.8
14 $1.7
15 $1.6
16 $1.6
17 $1.5
18 $1.4
19 $1.3
20 $1.3
 Formula Text
=$B$6
=IF(E7<=$B$7,F6*(1+$B$8),F6*(1-$B$9))
=IF(E8<=$B$7,F7*(1+$B$8),F7*(1-$B$9))
=IF(E9<=$B$7,F8*(1+$B$8),F8*(1-$B$9))
=IF(E10<=$B$7,F9*(1+$B$8),F9*(1-$B$9))
=IF(E11<=$B$7,F10*(1+$B$8),F10*(1-$B$9))
=IF(E12<=$B$7,F11*(1+$B$8),F11*(1-$B$9))
=IF(E13<=$B$7,F12*(1+$B$8),F12*(1-$B$9))
=IF(E14<=$B$7,F13*(1+$B$8),F13*(1-$B$9))
=IF(E15<=$B$7,F14*(1+$B$8),F14*(1-$B$9))
=IF(E16<=$B$7,F15*(1+$B$8),F15*(1-$B$9))
=IF(E17<=$B$7,F16*(1+$B$8),F16*(1-$B$9))
=IF(E18<=$B$7,F17*(1+$B$8),F17*(1-$B$9))
=IF(E19<=$B$7,F18*(1+$B$8),F18*(1-$B$9))
=IF(E20<=$B$7,F19*(1+$B$8),F19*(1-$B$9))
=IF(E21<=$B$7,F20*(1+$B$8),F20*(1-$B$9))
=IF(E22<=$B$7,F21*(1+$B$8),F21*(1-$B$9))
=IF(E23<=$B$7,F22*(1+$B$8),F22*(1-$B$9))
=IF(E24<=$B$7,F23*(1+$B$8),F23*(1-$B$9))
=IF(E25<=$B$7,F24*(1+$B$8),F24*(1-$B$9))