To complete your Excel Assignment, please do the following:

1. Download the excel file Lecture 4 Excel.xls
2. Create a new excel file and save it as YourLastName_YourFirstName_Section##_ExcelAssignment.xls
3. Complete an excel model for the Excel Application prompt (given below)
   1. Please use the models in Lecture 4 Excel.xls for guidance
   2. Please replicate the formatting of these spreadsheets in your final deliverable
4. Upload your Assignment to Blackboard as an excel file in the Excel Application Assignment submission link.

Excel Application Prompt:

You are considering the opportunity to develop a new drug patent for your pharmaceutical company:

- The research for the patent has an up-front cost of $750,000 (to be paid now)

- It will generate the following cash-flows over the next 7 years, while the patent is in effect:

Year	1	2	3	4	5	6	7
CF	$250,000.00	$250,000.00	$100,000.00	$100,000.00	$75,000.00	$75,000.00	$50,000.00

- The patent will expire but the drug will continue to generate moderate cash flows which start in

year 8 as $5,000 and grow at a rate of 4% after that.

- The cost of capital appropriate for this project is 10%

Should your company develop the drug?