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There is no period of the project from the question. They asked us to calculate NPV Wyatt oil is considering drilling a new oil well
There is no period of the project from the question. They asked us to calculate NPV
Wyatt oil is considering drilling a new oil well that is initially expected to produce oil at a rate of 10 million barrels per year. Wyatt has a long-term contract that allows them to sell the oil at a profit of $2.50 per barrel. The cost of drilling the rig is $175,000.000. If the rate of oil production from the rig declines by 3% over the year and the discount rate is 9% per year (EAR), then using continuous compounding. the NPV of this new oil well is _____________ I need the formula and your working step by step ThanksStep by Step Solution
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