Question: I need help solving question 3-8 but it involves 3-4, thanks in advance! 3-4 After years of working in the oil patch you have managed
3-4 After years of working in the oil patch you have managed to scrape together $1 million you are willing to invest in a drilling venture. Using all your knowledge gained from years of experience you have made the following estimates of operating income and investment amounts and What is the maximum amount o money you expect to have to invest in this deal and when will that happen? When do you anticipate payout will occur? Plot the cumulative net cash flow curve. Oper Year Income Invest MS MS 0 20 0 50 500 3 140 100 4 126 113 6 7 8 9 10 83 75 3-8, What is the net present value at 15%/annum of the net cash flow for the project in problem 3-4 if it is assumed that all cash flows occur at the middle of the year
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