It is crucial to choose an investment option with high returns, low risk, and sustainability. The two options provided exhibit the characteristics required at different intervals and measures. Hence, making the right decision and investment is important in securing the revenue to clearing future expenses. Option A is unique and sustainable as the investment option is tested and proves to be profitable. Also, the investment profits are bound to decline with time as other companies will be allowed to produce the drugs. On the other side, B’s investment option is unique as it involves the innovation of a new drug. If the drug works and is approved, the business is bound to make billions in profit. Nonetheless, suppose the investment project is not approved. In that case, the trials may cost the institution losses and a waste of time that could have been used to make profits in other projects.
Project A attractiveness is enhanced as the project is tested and proven to bring about profits. The drug has also been the market leader for years, hence the low risk involved in the enterprise. In project B, the enterprise’s attractiveness is enhanced as the Federal Drug Administration’s approval would result in tremendous profits for the project. The drug is unique to cure rare diseases; hence, the demand for the drug would be worldwide.
In the situation, I would recommend partial investment in both of the projects. Project B would act as the main project, enabling the institution to have tremendous profits in the long run if the patent is permitted. Nonetheless, project A would help reduce the associated risk by generating a small amount of income to keep the institution going. The institution must be willing to risk to increase profits and related benefits.