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The XYZ Company develops oil wells in unproven territory A consulting geologist has reported that there is a one-In-four chance of oil on a particular

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The XYZ Company develops oil wells in unproven territory A consulting geologist has reported that there is a one-In-four chance of oil on a particular tract of land. Drilling for oil on this tract would require an investment of about $190,000 . If the tract containsoll, it is estimated that the net revenue generated would be approximately $900.000 Another oil company has offered to purchase the tract of land for $90,000 Question a. Should XYZ drill for oil or sell the tract? Please draw the decision tree model, provide the calculation and final decision b. If the probability of the land containing all becomes 15%. drill or sell? Please draw the decision tree model, provide the calculation and final decision Question 4 . The XYZ Company develops oil wells in unproven territory, A consulting geologist has reported that there is a one-In-four chance of oil on a particular tract of land, Drilling for oil on this tract would require an investment of about $100,000, . If the tract contains oll, it is estimated that the net revenue generated would be approximately $900,000. . Another oil company has offered to purchase the tract of land for $90,000 Question: a. Should XYZ drill for oil or sell the tract? Please draw the decision tree model, provide the calculation and final decision b. If the probability of the land containing oil becomes 15%, drill or sell? Please draw the decision tree model provide the calculation and final decision

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