You have the right to invest in a new oil field. The oil field will cost $68,000 to develop which you will need to pay in 6 years from today. The oil field will generate a cash flow of $397,000 coming 8 years from today. If the cost of capital is 11%, what are the oil field rights worth today? (please round your answer to the nearest dollar)

Answer rating: 100% (QA)

Assumptions 1 Cash Flow is only for one year Time horizon from today 6 8 Cost of Development 6... View the full answer