Use the Present value formula to calculate the present dollar value of the given future return on investment to answer the following two questions:

A pharmaceutical company is evaluating an investment opportunity in the development of a new drug. Development will require an initial investment cost of $$100,000.$ The drug will generate profit equal to $$130,000$ only after $3$ years.

a$.$ If current interest rate were $12\%,$ should the drug company invest in the development of the new drug? Explain $(3$ points$)$