Thank you!! (2 points) An oil company discovered an oil reserve of 130 million barrels. For time t > 0, in years, the company's extraction plan is a linear declining function of time as f...
(2 points) An oil company discovered an oil reserve of 130 million barrels. For time t > 0, in years, the company's extraction plan is a linear declining function of time as follows: where q(t) is the rate of extraction of oil in millions of barrels per year at time t and b 0.05 and a -14. (a) How long does it take to exhaust the entire reserve? time years (b) The oil price is a constant 30 dollars per barrel, the extraction cost per barrel is a constant 16 dollars, and the market interest rate is 9 percent per year, compounded continuously. What is the present value of the company's profit? millions value of dollars
(2 points) An oil company discovered an oil reserve of 130 million barrels. For time t > 0, in years, the company's extraction plan is a linear declining function of time as follows: where q(t) is the rate of extraction of oil in millions of barrels per year at time t and b 0.05 and a -14. (a) How long does it take to exhaust the entire reserve? time years (b) The oil price is a constant 30 dollars per barrel, the extraction cost per barrel is a constant 16 dollars, and the market interest rate is 9 percent per year, compounded continuously. What is the present value of the company's profit? millions value of dollars