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What is the present worth of the vaccines

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Reference no: EM131672361

Question: The national Institute on Drug Abuse has spent $15 million on clinical trials toward finding out whether two vaccines can end the bad habits of nicotine and cocaine addiction. A switzerland based company is now testing an obesity vaccine. If the vaccines are semi- sucessful such that treatement costs and medical bills are reduced by an average of $15,000 per person per year, what is the present worth of the vaccines if there are 10 million beneficiaries in year 1 and an additional 15% each year through year 5? Use an interest rate of 8% per year.

Reference no: EM131672361

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