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How much of investment in the oil drilling is consider

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Reference no: EM133000313

Problem 1: Lisa is interested in an oil drilling opportunity that costs $150,000 and anticipates financing 75% of the cost ($112,500) by applying for a non-recourse loan available through Venture X. If Lisa also obtains commercial insurance against the risk she is undertaking ($37,500), how much of her investment in the oil drilling is consider "at-risk"? Please explain your answer.

Reference no: EM133000313

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