What is the present value of the well production

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An oil well presently produces 50000 barrels per year. It will last for 15 years more, but the production will fall by 5 percent per year. Oil prices are expected to increase by 3 percent per year. Presently the price of oil is 50 dollars per barrel. What is the present value of the well's production if the discount rate is 10 percent

Reference no: EM132709669

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