3. PEMEX, Mexico's petroleum corporation, has an estimated budget for oil and gas exploration that includes equipment for three offshore platforms as shown. Use the PW to select the best alternative at a MARR of 14% per year. Platform Initial Cost, $ million M & O, $ million per year Salvage Value, $ million Estimated Life, years X 300 320 75 20 Y 450 290 50 20 Z 510 230 90 20

3. PEMEX, Mexico's petroleum corporation, has an estimated budget for oil and gas exploration that includes equipment for three offshore platforms as shown. Use the PW to select the best alternative at a MARR of 14% per year. Platform Initial Cost, $ million M & O, $ million per year Salvage Value, $ million Estimated Life, years X 300 320 75 20 Y 450 290 50 20 Z 510 230 90 20

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter17: Long-term Investment Analysis

Section: Chapter Questions

Problem 10E

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