Question: Managers at Terlingua Drilling identify a potential new drilling project. They estimate the following expected net cash flows if the project is adopted. Year 0:

Managers at Terlingua Drilling identify a potential new drilling project. They

Managers at Terlingua Drilling identify a potential new drilling project. They estimate the following expected net cash flows if the project is adopted. Year 0: ($1,250,000) Year 1: $100,000 Year 2: $400,000 Year 3: $400,000 Year 4: $200,000 Year 5: $200,000 Year 6: $300,000 Year 7: $100,000 Suppose that the appropriate discount rate for this project is 12.7%, compounded annually, Calculate the net present value for this proposed project

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