Ghanata Oil has a well that will produce an annual cash flow of $236 million...
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Ghanata Oil has a well that will produce an annual cash flow of $236 million next year. The cash flow is expected to increase by 3.5 percent per year indefinitely. What is the well worth today if the discount rate is 15 percent?
| A. | $1,573 million | |
| B. | $899 million | |
| C. | $2,052 million | |
| D. | $1,725 million |
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