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stiv31
1 month ago
15

Blair Biotech enters into a licensing agreement with Pang Pharmaceutical for a drug under development. Blair will receive a paym

ent of $10,000,000 if the drug receives regulatory approval. Based on prior experience in the drug-approval process, Blair determines it is 90% likely that the drug will gain approval and a 10% chance of denial.
a. Determine the transaction price of the arrangement.
b. Assuming that regulatory approval was granted on December 20, 2017, and that Blair received payment from Pang on January 15, 2018.
c. Prepare the journal entries for Blair. The license meets the criteria for point-in-time revenue recognition.
Business
1 answer:
soldi70 [3.1K]1 month ago
7 0

Clarification:

a. The agreed price for the transaction is $10,000,000.

c. The journal entries are detailed below:

On December 20, 2017

Accounts Receivable A/c Dr $10,000,000

       To License revenue A/c $10,000,000

(Recording the revenue)

On January 15, 2018

Cash A/c Dr  $10,000,000

    To Accounts Receivable A/c  $10,000,000

(Recording the receipt of payment)

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The level of Maslow's hierarchy that corresponds to this scenario is the safety needs level.

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If an undergraduate student was considering getting a tattoo and stopped to ask herself what her parents would think of such beh
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Answer: The right answer is "subjective norm".

Explanation: If a college student contemplating a tattoo pauses to consider her parents' opinions regarding such an action, this thought process would reflect her subjective norm, as it specifically hinges on her parents' potential views about her behavior.

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Project A has cash flows of –$74,900, $18,400, $26,300, and $57,100 for Years 0 to 3, respectively. Project B has cash flows of
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Respuesta:

El Proyecto A debe ser aceptado NPV 3,948.77

El Proyecto B debe ser rechazado NPV -7,086.76

Explicación:

Calcular el valor presente de cada flujo de caja con una tasa de descuento del 11.5% utilizando la fórmula para el valor presente de un monto único:

\frac{Nominal}{(1 + rate)^{time} } = PV

la tasa para cada flujo de caja será del 11.5%

el tiempo corresponderá al año del flujo de caja

y el valor nominal de cada flujo de caja

Proyecto B:

Año 1

\frac{18400}{(1 + 0.115)^{1} } = PV  

PV   16,502.24

Año 2

\frac{22700}{(1 + 0.115)^{2} } = PV  

PV   18,258.96

Año 3

\frac{51500}{(1 + 0.115)^{3} } = PV  

PV   37,152.04

Total flujo de caja descontado: 71,913.24‬

NPV: flujo de caja descontado - inversión

71,913.24 - 79,000 = -7,086.76

El Proyecto B debe ser rechazado NPV -7,086.76

Proyecto A:

Año 1:

\frac{18400}{(1 + 0.115)^{1} } = PV  

PV   16,502.24

Año 2:

\frac{26300}{(1 + 0.115)^{2} } = PV  

PV   21,154.66

Año 3:

\frac{57100}{(1 + 0.115)^{3} } = PV  

PV   41,191.87

Total flujo de caja descontado: 78,848.77

NPV:flujo de caja descontado - inversión

78,848.77 - 74,900 = 3,948.77‬

El Proyecto A debe ser aceptado NPV 3,948.77

6 0
1 month ago
Imagine you've just gotten the first glimpse at your upcoming report card or transcript. 1. What are your steps for reviewing it
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Answer:

Steps to Review:

  1. Check for the unweighted GPA and Total GPA
  2. Examine individual grades by semester and overall GPA
  3. Review the marks explanation
  4. Finally, read the comments provided in the report

Sections of Interest:

  • Total GPA
  • Grades in specific subjects like Computer Science, Commerce, and Chemistry.
  • Teacher comments

What Matters to Me:

  • Aim to pass all subjects to minimize my teachers' frustrations.

What Matters to My Parents:

  • Ensure I succeed in all subjects with the best possible grades.

Steps If Something Seems Off:

  • First, investigate personally; for example, if a grade doesn’t match expectations, review the term papers to confirm results.
  • If necessary, approach the relevant authority to express concerns.
4 0
1 month ago
A one-year zero coupon bond costs \$99.43$99.43 today. Exactly one year from today, it will pay \$100$100. What is the annual yi
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Answer:

0.00573

Explanation:

Today's bond cost is $99.43

The bond's value at the year's end is $100

The difference calculates to: $100 - $99.43 = $0.57

This amount of $0.57 indicates the bond's yield. Therefore, the yearly yield is computed as $0.57/$99.43 = 0.00573

This yield represents the one-year discount rate applicable for a future value of $100, where its present value is $99.43.

Final Answer

0.00573

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8 days ago
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