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Oil is discovered in a land. The owner could: Drill herself: Cost of equipment = 3 0 0 k net annual cash flow = 6
Oil is discovered in a land. The owner could:
Drill herself:
Cost of equipment k
net annual cash flow k for years
then the land can be selled for m
lease a drilling company:
net annual cash flow k for years
the land can be sold for k at the end of year
MARR
Which option to pick?
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