Wyatt Oil is considering drilling a new self-sustaining oil well at a cost of $1,000,000. This well will produce $100,000 of oil in the first year, but as oil is extracted from the well, the amount of oil produced will decrease by 2% per year forever. 

If the appropriate interest rate for Wyatt oil is 8%, then what is the NPV for this oil well? 

Answer rating: 100% (QA)

NPV is the acronym for net present value Net present value is a calculation that com... View the full answer