A natural gas well is projected to produce ($ 200,000) in profit during its first year of
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A natural gas well is projected to produce \(\$ 200,000\) in profit during its first year of operation, \(\$ 190,000\) the second year, \(\$ 180,000\) the third year, and so on, continuing this pattern. If the well is expected to produce for a total of 10 years, and the effective annual interest rate is 8 percent, which of the following most closely represents the present worth of the well?
a. \(\$ 1,770,000\)
b. \(\$ 1,508,000\)
c. \(\$ 1,253,000\)
d. \(\$ 1,082,000\)
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Principles Of Engineering Economic Analysis
ISBN: 9781118163832
6th Edition
Authors: John A. White, Kenneth E. Case, David B. Pratt
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