Cheuron oil Company e coc) is exploving and producing heavy oiL in The estimated avaulafle barvels...

  

Transcribed Image Text:

Cheuron oil Company e coc) is exploving and producing heavy oiL in The estimated avaulafle barvels in resovuLow oman. The The oil feeld is avound. baurels, The estemated economie Years.he exploration cost CEC) is * 9, l00,01o00 which accouents fo 15 parcent d The and'vesidual value 'd 1o is 410,000,000 Life 4 oiL fred is 10 total cast percent. The extraction d oil propected to t Ist 4 years and 15% Ra Years(6b and 7) annuallyi prouded tha fedd iwill develop loy 1% 14 % annually for and 15%% for The be in yew 7. bequied: LA Find oul. the depletran Bax CDB) Depletin Ratt COR) and depelion amounl- on produce a Depletzon schedule. the annual banin. (B) whal- would be Ihe feeld by act of nature witnessu developmenl- in' yea 2o percent. case if t oil 8.(ASSune EGuatiins Residual valve DB = COST- COST Available EE. uniks DR !! Cheuron oil Company e coc) is exploving and producing heavy oiL in The estimated avaulafle barvels in resovuLow oman. The The oil feeld is avound. baurels, The estemated economie Years.he exploration cost CEC) is * 9, l00,01o00 which accouents fo 15 parcent d The and'vesidual value 'd 1o is 410,000,000 Life 4 oiL fred is 10 total cast percent. The extraction d oil propected to t Ist 4 years and 15% Ra Years(6b and 7) annuallyi prouded tha fedd iwill develop loy 1% 14 % annually for and 15%% for The be in yew 7. bequied: LA Find oul. the depletran Bax CDB) Depletin Ratt COR) and depelion amounl- on produce a Depletzon schedule. the annual banin. (B) whal- would be Ihe feeld by act of nature witnessu developmenl- in' yea 2o percent. case if t oil 8.(ASSune EGuatiins Residual valve DB = COST- COST Available EE. uniks DR !!

Answer rating: 100% (QA)

A exploration cost 2100000000 total cost 14000000000 residual value 1400000000 Depletion Box ... View the full answer