The rights to invest in a new oil field

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Reference no: EM13874468

You have the rights 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)

Reference no: EM13874468

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The rights to invest in a new oil field : You have the rights 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..

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