What should the minimum price be the first year

Assignment Help Electrical Engineering
Reference no: EM131186665

Use Excel® to solve Problem 6.8 for leverage factors of 0.2 and 0.4.

Problem 6.8

The XYZ oil company owns several natural gas wells and is negotiating a 10-year contract to sell the gas from these wells to another company. They are negotiating on the price of the gas in the first year, in dollars per thousand cubic feet ($/MCF), including a 4% escalation clause. XYZ expects the wells to produce 33,000 MCF the first year and to decline at the rate of 15% every year thereafter. Operating costs are estimated to be $2/MCF and escalate at 3% per year. XYZ has agreed to spend $500,000 now to lay pipelines from each well to the second company's processing plant. What should the minimum price be the first year for this to be acceptable to XYZ? Assume an end-of-year convention and an MARR of 15%.

Reference no: EM131186665

Questions Cloud

Discuss the procedure and the legal requirements : BLAW 2006 COMPANY LAW FOR BUSINESS CASE STUDY. Discuss the procedure and the legal requirements that may have been required to be satisfied under the Corporations Act 2001 (Cth) to convert the company from Sparkle Pty Ltd to a public company
Write a paper assignment : Write a paper assignment. -- The topic is: JEAN PIAGET'S FOUR THEORETICAL APPROACHES IN DEVELOPMENT.
Determine true class boundaries and true class marks : The following values of Young's Modulus for a rubber compound (in 1000 lb/in 2) have been measured.
Design perspectives used in teradata : What are the different design perspectives used in Teradata?
What should the minimum price be the first year : Operating costs are estimated to be $2/MCF and escalate at 3% per year. XYZ has agreed to spend $500,000 now to lay pipelines from each well to the second company's processing plant. What should the minimum price be the first year for this to be a..
Outputs the average of values : Write an algorithm that gets as input three data values x,y, and z and outputs the average of these values if the value of x is positive. If the value of x is either 0 or negative, your algorithm should not compute the average but should print th..
Program using skip and take operators : Write a Program using Skip and Take operators. How can it beneficial for bulky data accessing on page?
Professional skills in information communication technology : What are IoTs and how are they currently being used - You should explore a range of applications of IoT,for example, in areas such as healthcare, manufacturing and production.
How increasing the investment tax credit given to firms : Analyze how increasing the investment tax credit given to firms that make expenditures on new capital affects the dispersion of earnings. (For a review of relevant concepts, see chapter 4.)

Reviews

Write a Review

Electrical Engineering Questions & Answers

  Find unit vector in direction of a in spherical coordinates

Two points are given in Cartesian coordinates as P1 (0,0,1) and P2 (2,1,,3). vector A connects p1 (tail) to p2 [head). Find the unit vector in the direction of A in spherical and cylindrical coordinates.

  Obtain a minimal hazard free sop expression for f

1. Obtain a minimal hazard free SOP expression for f(A,B,C,D)=fm(0,1,5,6,8,11,13,14,15),d(2,3,10). 2.Implement f(A,B,C,D)=åm(0,4,5,7,10,13,14,15),d(1,2,9) using a minimal number of 1-of-2 MUXs and NOT gates (if needed).

  What is length ofthe count sequence of n-bit johnson counter

a) Starting from an initial count of 0000, list the countingsequence after each shift until the count returns to 0000b) Beginning with an initial count of 00..0, what is the length ofthe count sequence of an n-bit Johnson counter

  How to write f as a canonical sum-of-products

(a) Write f as a minterm list (that is, in the form fm(*)). (b) Write f as a canonical sum-of-products. (c) Simplify the expression from part (b). (d) Write f as a maxterm list (that is, in the form fM(*)). (e) Write f as a canonical product-of-sums...

  How to multiply any two four digit number in any number base

What algorithm (step by step list) can show how to multiply any two four digit numbers in any number base. The aim is to explain any base multiplication to a machine possessing artificial intelligence, that is presently oblivious as to how to do m..

  Design datapath which inputs three 3-bit unsigned numbers

Design a datapath which inputs three 3-bit unsigned numbers x,y, and z. If z is the binary representation for 3 or 7, output x + y. If z is the binary representation of 4 or 6, output x + z. If z is anything else, output y + z.

  Partitioned to maximize the expected value

How should the memory be partitioned to maximize the expected value?

  Discuss the trade-offs between fiber optic and satellite

Discuss the trade-offs between fiber optic and satellite communication in terms of costs, signal capacity, signaling method, interference, likelihood of failure and repair issues, multipoint capability, reconfiguration capability, and noise.

  Design an npn current mirror for this purpose

Design an npn current mirror for this purpose. Neglect the base curents.

  Identify type of the circuit

1. For the state diagram shown, answer the followings: A. Identify type of the circuit

  Design a full-adder using only a minimum number of decoders

Design a full-adder using only a minimum number of 2x4 decoders. The complements of variables are not available but logic levels 1 and 0 are available.

  Design logic ckt that will produce a high signal for alarm

A tank of fluid employed in a chemical process is being monitoredwith three sensors. The sensors measure temperature, pressure andfluid level. If all the sensor measurements are in the normalrange, the sensor outputs are low.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd