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Korolek [52]
3 years ago
6

Suppose Clifford recently discovered oil in his fields, which greatly excites him because he can earn a profit of $ 31.00 per ba

rrel based on present market conditions. Because production costs will be lower in five years, Clifford estimates that he can pump the oil out at a profit of $ 49.00 per barrel if he chooses to wait. If the interest rate currently is 1.00 %, what is the present value of the oil if he waits five years?

Business
1 answer:
QveST [7]3 years ago
6 0

Answer:

$46.62

Explanation:

Kindly check the attached picture for detailed explanation

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Learn more on Gross domestic product from the link below.

brainly.com/question/1383956

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