1. Assume the baseline case applies when year 0 is 2022. That is, the NPV of a...
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2- Assuming the cost of drilling a well does not change between 2022 and 2023, what will have to happen to the growth rate of the oil price each year after 2022 for the NPV to rise between 2022 and 2023 by the amount you indicated in your answer to question #1 above? Explain how you obtain your answer.
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