You work in a pharmaceutical company, which has developed a new drug. The drug has a 6-year patent. 11.9 million from th

[answerhappygod]

You work in a pharmaceutical company, which has developed a new
drug. The drug has a 6-year patent. 11.9 million from the third
year onwards and that this amount grows at a rate of 2.5% per annum
over the following 6 years. Once the patent expires, other
pharmaceutical companies will be able to produce generics
equivalent to your drug and competition will lead to zero future
profit. If the cost of capital is 8.8%, what is the present value
of producing this drug?