Jivas Labs researches and commercially produces two types of drugs, an

Question

https://gmatclub.com/forum/download/file.php?id=86918 Jivas Labs researches and commercially produces two types of drugs, analgesics and opioids. For the first few years after a drug’s commercial production begins, huge investments are made to set up the production and distribution chain for the new drug. As a result, the net profitability, which is calculated by subtracting investment expenses from the revenue from the drug, is negative. The graph represents the projected net profitability for the first 15 years of a newly-introduced analgesic and a newly-introduced opioid. From each drop-down menu, select the option that creates the most accurate statement about these projections based on the given information. The projected net profitability of the newly-introduced opioid is least at the end of the GRAPH_1_PLACEHOLDER year since commercial production. If net profitability is projected to grow, over the years 16 through 20, at the same rate as in years 10 through 15, the projected net profitability of the newly-introduced analgesic for the seventeenth year is approximately GRAPH_2_PLACEHOLDER million. GMAT-Club-Forum-6fc238s0.png

arushi118 · Answer

1st blank: The opioid is at its lowest at the end of the 5th year - the x-axis represents the number of years  since  production - so as the lowest point is at x=5 it means that it has been 5 years since they were produced - hence end of 5 years.
Hence, answer is "fifth"

2nd blank: slope of the line for analgesic: (10-5)/(15-10) = 1
So for 17th year: y - 10 = 1*(17-15) -> y=12
So, net projected profitability for 17th year will be $12 million.

sunshineeee · Answer

ExpertsGlobal5

I was incorrect in Q2 and use the wrong method for translating 100% growth for the next 5 years, meaning 20% per year then at 17th year, got 2(20%) growth.
Please kindly explain the right way. 
thanksss

BongBideshini · Answer

Q2. From 10-12 years, the increase in net profitability is 2M. So from 15-17 years, the increase will be the same, i.e., 2
At 17th year, value = 15th year value + 2M = 10M + 2M = 12M.

onlyPlanA · Answer

No, wait. The question says " at the end of ", not the beginning!! If the question was "which year the opioid was at its lowest", then it should have been fifth. But the slope goes negatively between 4-5 and then it starts growing at 5. Shouldn't the answer be "fourth"?

Jivas Labs researches and commercially produces two types of drugs, an

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