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XYZ Oil Co. estimates that the price value of its oil in the ground will escalate at the rate of about 8 % a year
XYZ Oil Co. estimates that the price value of its oil in the ground will escalate at the rate of about 8 % a year (in addition to the rate of inflation) in the future. Current interest rates on alternative money investments available for XYZ are also at about 8 %. Based on the equality of these two rates, XYZ Group of answer choices should leave its oil in the ground and let it appreciate should extract the oil and invest the money received would be equally well off with either choice a or b for right now
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