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An oil well presently produces 50000 barrels per year. It will last for 15 years more, but the production will fall by 5 percent per

An oil well presently produces 50000 barrels per year. It will last for 15 years more, but the production will fall by 5 percent per year. Oil prices are expected to increase by 3 percent per year. Presently the price of oil is 50 dollars per barrel. What is the present value of the well's production if the discount rate is 10 percent

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