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ivanzaharov [21]
3 years ago
9

Land in the Marcellus Shale natural gas play is currently leasing for $10,000 per acre. 100 acres are needed in order to drill f

or natural gas. Leases last for three years, and if no drilling occurs within those three years then the land goes back on the market. In other words, if a lease is signed in Year 0, then the company holding the lease must drill and complete a well in Year 0, Year 1 or Year 2. If this does not happen then the lease expires at the end of Year 2 and that parcel of land can be re-leased.
The cost to drill and complete a well is $5 million, incurred entirely in the year in which the well is drilled. There are no other operating costs to extract natural gas other than the drilling and completion. Currently (in Year 0), the present value of the revenues from the gas well are $3 million. Each year, there is a 40% probability that the present value of revenues will go up to $8 million for a well drilled in that year, and a 60% probability that the present value of revenues will be $3 million for a well drilled in that year.

Calculate the value of a 100 acre parcel of land in the current year (Year 0). Remember that leasing in Year 0 gives you the option to drill in Year 0, Year 1 or Year 2. Also remember that to calculate the value of the land you need to make a comparison with a scenario where you lease the land in Year 0 and are committed to drilling in Year 0. Does land appear to be over-priced, under-priced, or priced correctly? Please use a 10% discount rate per year.

Business
1 answer:
WARRIOR [948]3 years ago
7 0

Answer:

You can find your answer in attached document.

Explanation:

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B: an important determinant of wages, and it affects the production of goods and services.

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 Employees with their knowlege, skills and experience is valuable for a company and its economy; they they represent the company's asset, its human capital , which also includes other characteristics related to people instead of physical capital and machinery, such as: loyalty, intelligence, health, etc. <em>The human capital has a </em><em>direct relation</em><em> with the </em><em>produtivity</em><em> and its consequent </em><em>profits.</em>

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Anna and ben are up for the same promotion at work. when it comes time to make a decision, the management committee chooses ben
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I believe that Anna has just encountered a glass ceiling. 
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In the body of her letter I think she should start talking about her past experience with jobs and her experience with whatever jobs she's worked for before,

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The Small Business Administration was established under the Eisenhower tenure in order to boost the nation's economy.

They work to help small businesses by offering them several types of support such as management training and loans.

Find out more on the Small Business Administration at brainly.com/question/13424073.

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