1. You are planning to invest in a productive oil well that is expected to produce 2,000 barrels of oil per year for 10 years. The current price of oil is $42 per barrel, but the price is expected to increase at a rate of 3 percent per year for the next 10 years. If your opportunity cost of funds is 8.25 percent p.a., what would be the upper limit of how much you would be willing to pay for this investment?