I 1 Consider an offshore oil property with an estimated oil reserve of 50 million barrels of oil, where the present value of the development cost is $12 per barrel and the development lag is two years The firm has the rights to exploit this reserve for the next twenty years and the marginal value ...

Current value of oil reserves S value of developed reserve discounted back to the duration of develo ...

I 1. Consider an offshore oil property with an estimated oil reserve of 50 million barrels...

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Intermediate Microeconomics

ISBN: 978-0393123968

9th edition

Authors: Hal R. Varian

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I 1. Consider an offshore oil property with an estimated oil reserve of 50 million barrels...

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