You have the right to invest in a new oil field. The oil field will cost $68,000
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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)
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Applied Equity Analysis and Portfolio Management Tools to Analyze and Manage Your Stock Portfolio
ISBN: 978-1118630914
1st edition
Authors: Robert A.Weigand
Posted Date: