An oil well produces 20,000 barrels of oil per year. Suppose the price of oil is $50

Question:

An oil well produces 20,000 barrels of oil per year. Suppose the price of oil is $50 per barrel. You want to purchase the right to the oil produced by this well for the next five years. At a of 10%, what is the value of the oil rights? (You can assume that the cash flows from selling oil arrive at annual intervals).
Discount Rate
Depending upon the context, the discount rate has two different definitions and usages. First, the discount rate refers to the interest rate charged to the commercial banks and other financial institutions for the loans they take from the Federal...