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:

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?