The Maximum the Exendine oil company should give for option is $2,114,602.
Particulras | ||||
Cost of drill | $3,000,000 | |||
barrel per year | 20,000 | |||
$87.50 | ||||
$70 | ||||
current price of oil | $56 | $56 | ||
$44.80 | ||||
$35.84 | ||||
Best case senario (when the price is increasing) | 1st 6 months | 2nd six months | 2 year | 3 year |
Casf flow | $560,000 | $700,000 | $1,750,000.00 | $1,750,000.00 |
B8*10000 | C7*10000 | D6*20000 | D6*20000 | |
Discounted cash flow | $535,157 | $668,946 | $1,459,519.19 | $1,332,894.24 |
B14/(1.095)^0.5 | C14/(1.095)^0.5 | D14/(1.095)^2 | E14/(1.095)^3 | |
Total cash Flow | $3,996,516 | |||
worst case senario (when the price is increasing) | 1st 6 months | 2nd six months | 2 year | 3 year |
Casf flow | $560,000 | $448,000.00 | $716,800.00 | $716,800.00 |
B8*10000 | C9*10000 | D10*20000 | D10*20000 | |
Discounted cash flow | $535,157 | $428,125.36 | $597,819.06 | $553,501.12 |
D22/(1.09)^2 | E22/(1.09)^3 | |||
Total cash Flow | $2,114,602 |
4. Exendine Oil, an exploration and development company located in Okesa, Oklahoma plans to bid for...
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