Question: You will set up a model to use to calculate what is an optimal period for closing a gas power plant, since a new well

You will set up a model to use to calculate what is an optimal period for closing a gas power plant, since a new well will be drilled to increase production, given current production and gas prices. During the entire drilling period, production must be shut down completely, and it is set to T number of days. The production is 150 mcf daily, and it is expected that after production, after drilling, it will be 150 + M mcf, where M is set to three possible outcomes, namely m = {100,200,300}. Solve this for all three possible solutions. You will find the three solutions that provide the most profit for the gas power plant after it has been closed and has a new production. You can start in the middle or end of a month at the start for stoning the gas power plant. (For example, a close in May 10 will look like months 5.33) Gas prices average per month: January 6 USD / mcf. February 8 USD / mcf. March 6.5 USD / mcf. April 4.6 USD / mcf. May 3.5 USD / mcf. June 4.6 USD / mcf. July 5.4 USD / mcf. August 4.9 USD / mcf. September 5.3 USD / mcf. October 6.7 USD / mcf. November 8 USD / mcf. December 9 USD / mcf.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!

Compose an offer that specifically limits the offerees ability to accept.

summarise that article and make it to 2000 words Your report should clearly contain 4 main Parts: Introduction, Literature Review, Result and Analysis, Conclusion. The Challenge of Setting Standards...

Use the article to answer the question below QUESTION Once Spencer's receives a commission, Spencer's is not affected by the return policy at all. Are there any issues to note about this arrangement?...

Use the article to answer the question below QUESTION Highland Malt allows its customers to return a barrel purchased within 180 days. Should this be considered in determining the timing of revenues?...

Situated in the foothills of the Himalayas is the city of Amra, famous for the captivating beauty of its landscape and meadows. To give an impetus to the economic welfare of this region while given...

OVERVIEW You have been asked by the government owned company. Ontario Power Generation (OPG). to prepare a report evaluating alternate methods for expanding its electricity generation portfolio in...

Use the article to answer the question below QUESTION Consider the advertising expenditure of $75,000. Does it represent a future economic benefit, which would imply that it would be an asset to be...

read the following article and answer the question. QUESTION How should Highland Malt recognize revenue? Options to consider include when payment is received, 180 days after sale, after the...

Dinners MU boeuf Total Workers 1 $35.00 0.20 2 $33.25 0.43 3 $31.59 0.69 4 $30.01 1.00 5 $28.51 1.35 6 $27.08 1.75 7 $25.73 2.21 8 $24.44 2.75 9 $23.22 3.36 10 $22.06 4.06 11 $20.96 4.87 12 $19.91...

INTRODUCTION Driving back to Knoxville on Friday afternoon, Morgan finally had some time to think. Shed spent most of the week in Nashville meeting with many of the Tennessee Valley Authoritys (TVA)...

Repeat Exercise for a 50 sales tax instead of a 50 excise tax. Suppose the demand curve for oranges is given by the equation Q = 200 P + 1,000 With quantity (Q) measured in oranges per day and price...

OILCO produces three grades of gasoline (regular, premium, and super) by blending three types of crude oil. All three types of crude oil contain two important ingredients (X and Y) required to...

What is "weak reparations" in the context of climate change? Indemnifying all losses Increasing fossil fuel subsidies Providing sustainable energy infrastructure investment Ignoring environmental...

What is an example of constructive feedback? provide reference