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I need help solving problem 3-6 but it involves Problem 3-4, I have posted both. Thank you in advance! 3-4 After years of working in
I need help solving problem 3-6 but it involves Problem 3-4, I have posted both. Thank you in advance!
3-4 After years of working in the oil patch you have managed to scrape together $1 million you are willing to invest in a drilling venture. Using all your knowledge gained from years of experience you have made the following estimates of operating income and investment amounts and timing. What is the maximum amount of money you expect to have to invest in this deal and when will that happen? When do you anticipate payout will occur? Plot the cumulative net cash flow curve Oper Year Income Invest M$ MS 0 20 0 80 50 500 140 100 4 126 113 102 92 83 75 5 6 8 9 10 -6 What is the undiscounted return on investment (ROI) for the project in problem 3-4? What is the undiscounted profit: investment ratio where profit net cash flow Step by Step Solution
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