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There is a 11% chance that the amount of oil in a prospective field is 7 million barrels and a 80% chance of 15 million

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There is a 11% chance that the amount of oil in a prospective field is 7 million barrels and a 80% chance of 15 million barrels. If the actual amount of oil is 7 million barrels, the present value of the cash flows from deiling will be $2 million. If the amount is 15 million barrels, the present vule will be a million. The cout to drill the wolt is $6 million Suppose, a test that costs $125,000 can verify the amount of or under the ground, is it worth paying for the ter Please enter the full number as your answer. (1.0. 10,000,000 and NOT 10 million) What is the net procent value of not tooting? What is the net present value of testing Should the company perform the metto verty the amount of all under the ground? Test No Test

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