Four years ago, a pharmaceutical company was considering the development of a new drug called Zeno for treating Type-2 Diabetes. The company spent $2 million on a feasibility study. Based on the feasibility study, the company decided to spend (and did spend) $14 million on research and development.  The company decided not to undertake the development of Zeno.  However, as of today, management believes that developing Zeno might be worthwhile to undertake and wants to calculate the NPV associated with developing Zeno.  In the calculation of NPV for deciding whether to develop Zeno, how much should be included for the cost of the project?

The present value of $70,000 in Year 1 and $100,000 in Year 2, if the interest rate for determining the present value is 10%, is $155,372 (rounded to the nearest dollar).

For a capital project, the following NPVs at different discount rate were used: Discount rate           NPV                  22%                    $10 million        18%                   $ 7 million       16%                     $  0       14%                    -$2 million   The internal rate of return for this capital project is

You are offered an investment that costs $100,000 and pays you $115,000 at the end of 4 years. You want a 6% return on this investment. You should accept this investment because it is profitable.

Which of the following choices is a disease or condition produced by an excess of adrenocorticosteroids?

Each of the following will be reduced by glucocorticoid excess except one. Which is the exception?

A distributor manages a critical component with an average demand rate of 100 units per week and a standard deviation of demand of 50 units per week. The supplier lead time is 3 weeks. To maintain their desired service level, the distributor utilizes a safety factor (z) of 2. If the cost to hold one unit of inventory is $10 per week, what is the average holding cost per unit sold? Enter your answer as a whole number (for example 20).

During a budget meeting, a department head purposefully inflates their demand forecast to secure a larger budget for the upcoming year. According to the notes, which human bias does this demonstrate?  

An analyst at Facebook is using Exponential Smoothing to forecast Daily Active Users (DAUs). The last forecast (ŷₜ) was 400 million, and the actual demand (yₜ) turned out to be 500 million. If the analyst uses a conservative smoothing parameter of α = 0.2, what is the new forecast (ŷₜ₊₁)? Enter your answer as a whole number (for example, 20). Do not include zeros for “million.” For instance, if the answer is 20 million, enter 20.  

Two different companies have adopted strategies to manage variety without crippling inventory costs. Company X allows customers to customize the colors of their sneakers, only finishing the shoe once the exact order is placed. Company Y is an online retailer that sells thousands of rare, slow-moving books from a massive, single warehouse. According to the lecture notes, what fundamental concept links the success of both strategies?