You work for a pharmaceutical company that has developed a new drug. The patent on the drug will last for 17 years. You expect that the drug will produce cash flows of $10 million in its first year and that this amount will grow at a rate of 4% per year for the following 16 years. Once the patent expires, other pharmaceutical companies will be able to produce generic equivalents of your drug and competition will drive any future profits to zero. If the interest rate is 12% per year, then the present value of producing this drug is closest to:

You work for a pharmaceutical company that has developed a new drug. The patent on the drug will last 17 years. You expect that the drug’s profits will be $1 million in its first year and that this amount will grow at a rate of 5% per year for the next 16 years. Once the patent expires, other pharmaceutical companies will be able to produce the same drug and competition will likely drive profits to zero. What is the present value of the new drug if the interest rate is 10% per year?

You work for a technology company that has developed a new microchip. The patent on the microchip will last 13 years. You expect that the microchip’s profits will be $1 million in its first year and that this amount will grow at a rate of 4% per year for the next 13 years. Once the patent expires, other technology companies will be able to produce the same microchip, and competition will likely drive profits to zero. What is the present value of the new microchip if the interest rate is 10% per year?

If a pharmaceutical company discovers a new drug and successfully patents it, patent law gives the firmGroup of answer choicespartial ownership of the right to sell the drug for a limited number of years.partial ownership of the right to sell the drug for an unlimited number of years.sole ownership of the right to sell the drug for a limited number of years.sole ownership of the right to sell the drug for an unlimited number of years.

21. Dempsey Co owns a pharmaceutical business with a year‐end of 30 September 20X4. Dempsey Co commenced the development stage of a new drug on 1 January 20X4. $40,000 per month was incurred until the project was completed on 30 June 20X4, when the drug went into immediate production. The directors became confident of the project’s success on 1 March 20X4. The drug has an estimated life span of five years and time‐apportionment is used by Dempsey where applicable. What amount will Dempsey charge to profit or loss for development costs, including any amortisation, for the year ended 30 September 20X4? A $12,000 B $98,667 C $48,000 D $88,000 22. Which TWO of the following events which occur after the reporting date of an entity but before the financial statements are authorised for issue are classified as ADJUSTING events in accordance with IAS 10 Events after the Reporting Period? A A change in tax rate announced after the reporting date, but affecting the current tax liability B The discovery of a fraud which had occurred during the year C The determination of the sale proceeds of an item of plant sold before the year end D The destruction of a factory by fire 23 A division of an entity has the following balances in its financial statements: Particulars $ Goodwill 700,000 Plant 950,000 Building 2,300,000 Intangibles 800,000 Other net assets 430,000 Following a period of losses, the recoverable amount of the division is deemed to be $4 million. A recent valuation of the building showed that the building has a market value of $2.5 million. The other net assets are at their recoverable amount. The entity uses the cost model for valuing building and plant. To the nearest thousand, what is the balance on the building following the impairment review? A $2,300,000 B $2,500,000 C $2,027,000 D $1,776,000 give me the correct options

ABC Company purchases a patent from XYZ Company for the price of ₱250,000 and incurs legal and consulting fees related to the purchase in the amounts of ₱60,000 and ₱40,000, respectively. The patents remaining life is 15 years, but because of the market competition, its useful life is estimated to be only 10 years.What is the total acquisition cost of the patent?