Discussion

Explanation:

Sales of the company if it launches the new drug = 0.5(100) + 0.5(20) = 50 + 10 = Rs. 60 crores

Cost of launching the new drug = Rs. 50 crores

Therefore, profit that the company can expect to earn = 60 – 50 = Rs. 10 crores.

Hence, option (b).

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