The price of oil is $115 per barrel. The effective lease rate and risk free rate are 3.0% and 4.0%, respectively
The constant cost of extraction is $85 per barrel and the volatility of prices is 15.0%. If an untapped well costs $2,100 to open and can produce indefinitely, what is the value of the unopened well?
A) $724
B) $854
C) $913
D) $1,025
C
You might also like to view...
Which of the following would not be included in the cash budget?
A. Ending cash balance B. Interest expense C. Receipts from customers D. Depreciation expense
The ability to limit users' views to only specific columns or records gives a(n) _____ an advantage: the ability to implement security measures.
Fill in the blank(s) with the appropriate word(s).
______ is the right to give orders, enforce obedience, make decisions, and commit resources toward completing organizational goals.
A. Accountability B. Responsibility C. Sustainability D. Authority
Regulators are required to act more quickly in forcing banks with inadequate capital to correct the deficiencies.
Answer the following statement(s) true (T) or false (F)