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Peroleum ter controls offshore oil leases. It is considering the construction of a deep-sea oil rig at a cost of $500 million The price of

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Peroleum ter controls offshore oil leases. It is considering the construction of a deep-sea oil rig at a cost of $500 million The price of oil is $100/bb! and extraction costs are $50/bbl. Pl expects prices and costs to remain constant. The rig will produce an estimated 1.200.000 bol, per year forever The risk free rate is 10 percent per year, which is also the cost of capital (linore taxest Calculate the NPV to invest today, -60000000 80 000 000 -100000000

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