Question: GoRx is a pharmaceutical company that is considering the development and sales of a new drug. Development will take six years at a cost of

GoRx is a pharmaceutical company that is considering the development and sales of a new drug. Development will take six years at a cost of $205,000 per year (the first cash outflow for development will occur 1 year from today). After that, the drug is expected to make $295,083 per year for 10 years (the first cash inflow from sales will occur 7 years from today). What is the discount rate for this project that makes the NPV equal to zero (in other words, what is the IRR of this project)?

The IRR of this project is 12.03%, how? Show work on excel.

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