What should the minimum price be the first year

Assignment Help Electrical Engineering
Reference no: EM131186665

Use Excel® to solve Problem 6.8 for leverage factors of 0.2 and 0.4.

Problem 6.8

The XYZ oil company owns several natural gas wells and is negotiating a 10-year contract to sell the gas from these wells to another company. They are negotiating on the price of the gas in the first year, in dollars per thousand cubic feet ($/MCF), including a 4% escalation clause. XYZ expects the wells to produce 33,000 MCF the first year and to decline at the rate of 15% every year thereafter. Operating costs are estimated to be $2/MCF and escalate at 3% per year. XYZ has agreed to spend $500,000 now to lay pipelines from each well to the second company's processing plant. What should the minimum price be the first year for this to be acceptable to XYZ? Assume an end-of-year convention and an MARR of 15%.

Reference no: EM131186665

Questions Cloud

Discuss the procedure and the legal requirements : BLAW 2006 COMPANY LAW FOR BUSINESS CASE STUDY. Discuss the procedure and the legal requirements that may have been required to be satisfied under the Corporations Act 2001 (Cth) to convert the company from Sparkle Pty Ltd to a public company
Write a paper assignment : Write a paper assignment. -- The topic is: JEAN PIAGET'S FOUR THEORETICAL APPROACHES IN DEVELOPMENT.
Determine true class boundaries and true class marks : The following values of Young's Modulus for a rubber compound (in 1000 lb/in 2) have been measured.
Design perspectives used in teradata : What are the different design perspectives used in Teradata?
What should the minimum price be the first year : Operating costs are estimated to be $2/MCF and escalate at 3% per year. XYZ has agreed to spend $500,000 now to lay pipelines from each well to the second company's processing plant. What should the minimum price be the first year for this to be a..
Outputs the average of values : Write an algorithm that gets as input three data values x,y, and z and outputs the average of these values if the value of x is positive. If the value of x is either 0 or negative, your algorithm should not compute the average but should print th..
Program using skip and take operators : Write a Program using Skip and Take operators. How can it beneficial for bulky data accessing on page?
Professional skills in information communication technology : What are IoTs and how are they currently being used - You should explore a range of applications of IoT,for example, in areas such as healthcare, manufacturing and production.
How increasing the investment tax credit given to firms : Analyze how increasing the investment tax credit given to firms that make expenditures on new capital affects the dispersion of earnings. (For a review of relevant concepts, see chapter 4.)

Reviews

Write a Review

Electrical Engineering Questions & Answers

  Estimate the value of the input offset voltage

A particular inverting amplifier with nominal gain of -100 V/V uses an imperfect op amp in conjunction with 100-k ohm and 10-M ohm resistors. The output voltage is found to be +9.31 V when measured with the input open and +9.09 V with the input gro..

  Determine total complex power absorbed by wye-connected load

A tree-phase, 60Hz, 5MVA synchronous generator has balanced line-to-line voltages of 8320V at its terminals. if the generator is supplying power to delta-connected, balanced load of 5MVA at a 0.8 lagging power factor

  How square wave output replacing the mechanical switch

Give an example of an RC circuit whose transient behavior cannot be modeled by having a function generator with square wave output replacing the mechanical switch.

  Design the controller and estimator for closed-loop system

design the controller and estimator so that the closed-loop unit step response to a command input has a rise time tr

  Determine an appropriate input voltage settings for daq

The transducer has a 2000 lb capacity, a 2 mV/V rating and an excitation voltage of 10V. An estimate of the maximum force is 1200 lbs. Determine an appropriate input voltage settings for DAQ.

  What is the annual radon exposure

An individual is exposed 75% of the time to radon with a physical concentration of 4.6 pCi/L and an equilibrium factor of F = 0.6. The remaining 25% of the time, the individual is exposed to radon at a concentration of 1.3 pCi/L and with an equili..

  At what distance from the ring''s center is e maximum

Could you please double check my method and determine what I am missing to solve z for the maximum E?

  Find the starting torque of the motor

A 460-V, four-pole, 75-hp, 60-Hz, Y connected, three phase induction motor develops its full load induced torque at 1.2 percent slip when operating at 60 Hz and 460 V. The per phase circuit model impedances of the motor are

  Design amplifiers with voltage gain and input resistance

MOS (p and n) npn and pnp transistors with parameters given in the text or select your own by using industrial data sheets, available on the internet. Also resistors, capacitors, and power supplies (10 V, 5 V, and 3.3 V) are available.

  What compresses one pound mole of an ideal gas

A container with a plunger compresses one pound mole of an ideal gas from 1 atmospheres pressure to 10 atmospheres. Calculate the amount of work done if the process is considered to be polytropic.

  Determine what is the input capacitance of a 4- inverter

Let a 4x inverter have transistors four times as wide as those of aunit inverter. If a unit inverter has three units of inputcapacitance and parasidic delay of pinv, what is the input capacitance of a 4x inverter

  Design a moore sequential circuit to control the lights

As indicated from the diagram, when LEFT = 1 the lights flash in a pattern LA on; LA and LB on; LA, LB, and LC on;all off; and then the sequence repeats. When RIGHT = 1, the lightsequence is similar. If a switch fromt LEFT to RIGHT (or viceversa) ..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd