An oil company has paid the Irish Govt. €15m for oil exploration rights. If oil is found, the oil company must pay €24 for every barrel produ be sold for €30 per barrel and will cost €3 a barrel to extract. The Irish Govt. has imposed an additional fee of €2 a barrel to pay for insurance What is the total relevant profit?
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![An oil company has paid the Irish Govt. €15m for oil exploration rights. If oil is found, the oil company must pay €24 for every barrel produced. The oil company has spent €9m on drilling and has just struck oil. They estimate that they will recover 10m barrels of oil. Oil can
be sold for €30 per barrel and will cost €3 a barrel to extract. The Irish Govt. has imposed an additional fee of €2 a barrel to pay for insurance against oil spills.
What is the total relevant profit?
O A. £10 millions
O B. £30 millions
O C. £3 millions
O D. £0](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fedc4c869-2bbd-40c4-b1bf-56ef0fecd4bb%2F6082d15e-e164-4ab9-a611-923ba54583ce%2Faak9uwt_processed.png&w=3840&q=75)
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