Required information PEMEX, Mexico's petroleum corporation, has an estimated budget for oil and gas exploration that includes equipment for three offshore platforms as shown. Use PW analysis to select the best alternative at a MARR of 16% per year. Platform X Y Z First cost, $ million -300 -450 -510 M&O, $ million per year -320 -290 -230 Salvage value, $ million 75 50 90 Estimated life, years 20 20 20 million, the present worth of platform Y is $- 2262.15 million, and the present Select platform X, Y, or Z using tabulated factors. The present worth of platform X is $- 2298.4 worth of platform Z is $- 1944.14 million. The platform selected based on the present worth is platform Z
Required information PEMEX, Mexico's petroleum corporation, has an estimated budget for oil and gas exploration that includes equipment for three offshore platforms as shown. Use PW analysis to select the best alternative at a MARR of 16% per year. Platform X Y Z First cost, $ million -300 -450 -510 M&O, $ million per year -320 -290 -230 Salvage value, $ million 75 50 90 Estimated life, years 20 20 20 million, the present worth of platform Y is $- 2262.15 million, and the present Select platform X, Y, or Z using tabulated factors. The present worth of platform X is $- 2298.4 worth of platform Z is $- 1944.14 million. The platform selected based on the present worth is platform Z
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Required information
PEMEX, Mexico's petroleum corporation, has an estimated budget for oil and gas exploration that includes equipment for
three offshore platforms as shown. Use PW analysis to select the best alternative at a MARR of 16% per year.
Platform
First cost, $ million
Y
Z
-300
-450
-510
M&O, $ million per year
-320
-290
-230
Salvage value, $ million
75
50
90
Estimated life, years
20
20
20
Select platform X, Y, or Z using tabulated factors.
The present worth of platform X is $- 2298.4
worth of platform Z is $- 1944.14
million, the present worth of platform Y is $- 2262.15
million, and the present
million.
The platform selected based on the present worth is platform Z
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