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Fast plss 3. The cost of drilling a natural gas well is $250,000. 10% of the revenue from the sale of natural gas from this

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Fast plss

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3. The cost of drilling a natural gas well is $250,000. 10% of the revenue from the sale of natural gas from this particular well constitutes operating expenses. If found, natural gas from a highly productive well will amount to 260,000 cubic feet per day. However, the probability of locating such a productive well is nearly 10%. a) If natural gas sells for 835 per thousand cubic feet, what is the E (PW) of prot to the ownerfoperator of this well? The life of the Well is 10 years and MARR is 15% per year. (15 points) b) Repeat Part (a) when the life of the well is seven years. (15 points)

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